Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

M/s. Spicer India Ltd. Versus Commissioner of Customs

2017 (1) TMI 689 - CESTAT BANGALORE

100% EOU - technical collaboration agreement - mis-declaration of goods - undervaluation - suppression of facts - confiscation - penalty - Held that: - the learned Commissioner has correctly valued the imported goods on the basis of various rules of valuation as contained in Customs Valuation Rules and he has also come to the conclusion that the method adopted by the Chartered Engineer was fair and reasonable and has taken into consideration all the relevant factors. Further with regard to the i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ORDER Per S. S. Garg The present appeal is directed against the impugned order passed by the Commissioner of Customs dated 23.4.2004 vide which the Commissioner of Customs has assessed the value of the imported goods under Rule 8 of Customs Valuation Rules, 1998 read with subsection (1) of Section 14 of Customs Act, 1962 and also held that importation is liable to confiscation under Section 111(m) of the Customs Act, 1962 but has given the option to the importer to redeem the same on payment of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

29 dated 29.3.2004 through their CHA M/s. Passage Cargo Pvt. Ltd. for clearance of the following items. Invoice No. & Date Description of the item Value UL 83615 dt.22.3.04 Allen Drill Head Broach Fixture Cutter Tool USD 10,000 UL 83606 dt.18.3.04 End Yoke Assembly USD 557.40 UL 83601 dt.17.3.04 Slinger USD 18.75 The total assessable value of Rs.5,97,643.46. 2.1 On the basis of the invoices filed by the appellant, Bill of Entry was assessed on 29.3.2004. The Bill of Entry was allowed clearan .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ced that the value of the goods was mentioned as US $ 1,94,600 as against US $ 10,000 mentioned in the invoice No. UL 83615 produced at the time of assessment. Further, it was also found that the goods are used second hand. On questioning about the value difference, the importer produced copy of invoice No.83615 dated 22.3.2004 wherein the value of goods was mentioned as US $ 1,94,600 and Chartered Engineer certificate certifying the value of goods as US $ 1,94,600. Further, the importer has sta .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

The Invoice No. UL 83615 / 22.3.04 produced by the importer at the time of assessment appears to be not correct inasmuch as the value has been mis-declared as US $ 10,000/- as against US $ 1,96,400/-. (b) On perusal of both the invoices bearing No. UL 83615, the one produced at the time of assessment and the other produced by the importer before AC (Import Shed) it appears that both are photocopies and the figure US $ 1,96,400/- has been blocked at the time of photocopying and the figure US $ 1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r s Certificate issued by Chartered Engineer of USA. (e) It is seen from the Invoice No. UL 83615 dt. 22.3.04 that there are 5 items and the value is US $ 1,94,600/-. But as per Annexure AA found in the package the value is mentioned as US $ 1,94,600/- for 8 items. However, as per Annexure AA, the value for 6 items found in the consignment works out to US $ 1,77,800/-. (f) The reply given by the importer that they put a notional value of US $ 10,000/- does not appear to be acceptable as there is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

eer in the presence of CHA/importer. Thereafter Shri Garuda Prasad, Chartered Engineer in the presence of the customs officer, importer and CHA assessed the value of the goods and it was assessed at ₹ 40,48,301/-. After the goods were appraised by the Chartered Engineer, it was found that the importer has undervalued the goods and has mis-declared the value of the goods imported vide Bill of Entry 592329 dated 29.3.2004 and also failed to declared secondhand entry of the goods and suppress .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s not entitled to import secondhand capital goods duty-free. Since there is no duty implication the benefit has been availed under Notification No.52/2003-Cus. There cannot be mis-declaration as undervaluing the goods does not benefit the appellant and consequently imposition of penalty, confiscation of goods and imposition of redemption fine is not sustainable. Further learned counsel submitted that the Chartered Engineer s certificate has not given any justification for the value adopted in th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the other hand, the learned AR defended the impugned order and submitted that the learned Commissioner has analyzed all the facts and the circumstances of the case and has rightly come to the conclusion that the appellant have mis-declared the value of secondhand capital goods imported by them. 4. After considering the submissions of both the parties and perusal of the impugned order, we find that the learned Commissioner has passed a very reasoned order on the basis of evidence which has come .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n supplier who is a related person for supply for plant and machinery and for which they have to make the payment on a credit basis. The goods under importation are part and parcel of that plant and machinery for which they would be making the payment subsequently. Therefore the declaration given in the Invoice that they have been supplied free of charge is totally wrong and amounts to a misdeclaration on the part of the importer. The party was well aware that the foreign Chartered Engineer had .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hey had the foreign supplier's original invoice as also the foreign Chartered Engineer's Certificate with them. Merely because, they are a 100% EOU and are entitled for importation of capital goods duty free does not mean that they can declare any value in respect of the goods under importation and get away with it. 23. As per the provisions of Section 14(1) of the Customs Act, 1962, the value for goods chargeable on duty of Customs is the price at which such or like goods which ordinari .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t;value" in relation to any goods, means the value thereof determined in accordance with the provisions of subsection(1) of Section 14. The Hon'ble Supreme Court in the case of Om Prakash Bhatia vs Commissioner of customs, Delhi [2003(155) ELT 423 (SC)] has held that the value for determining the value of the goods provided under Section 14 of the Customs Act, 1962, is required to be followed even if no duty is payable. Therefore, even in a case where the duty chargeable is nil, assessm .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

clared as free of charge and a notional value of US$10000 has been indicated in the invoice on the insistence of the importer and it does not reflect the correct value. As admitted by the party, during the course of personal hearing, they have a technical collaboration agreement for the supply of plant and machinery with the foreign supplier and they are required to make payment for these goods on a credit basis at a subsequent point of time. Merely because the payment is not made immediately, i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that the declared value of the goods being valued closely approximate to either the transaction value of identical goods or of similar goods in sales to unrelated buyers in India or deductive value of similar goods or identical goods or the computed value for identical goods or similar goods. In the absence of any such evidence, adduced by the importer, the transaction value of US$10000 declared by them is liable to be rejected and I hold accordingly. 25. To determine the transaction value, one .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

other processing employed in the producing of imported goods should be known, In the absence of this data, it is not possible to apply Rule 7 or 7A of the Customs Valuation Rules in the instant case. That leaves the application of Rule 8, which is the residual method, for evaluation of the goods under importation. In the instant case, the foreign chartered Engineer's Certificate clearly reveals that the value of the goods under importation is US$1,77,800/- as certified by the foreign Charter .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on made by the party during the personal hearing is that if depreciation norms is allowed taking into account the year of manufacture indicated in the foreign Chartered Engineer's Certificate, the CIF value comes to US$74617/-. But on examination of the goods by the local Chartered Engineer, it is found that SI. Nos. or Model numbers are not available on the items and the year of manufacture is also not indicated. Therefore, the - question of accepting the foreign Chartered Engineer's Ce .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version