TaxTMI 
TaxTMI 
2017 (4) TMI 1075
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the declared value i.e. Rs. 3,57,494/- but on the reasonable belief that value declared on the invoice appears much low in comparison to the goods of other branded company like M/s. Swaroski. To verify the fact of under valuation, the Revenue made contact with M/s. Preciosa Company on 27.3.2012 through e-mail and sought for price list for the same make and specification as the imported goods, and in reply, M/s. Preciosa Company gave a price list and on comparison, it was found that goods imported were grossly undervalued. 2. Thereafter, the goods were seized under section 110 of Customs Act, 1962 and representative samples of goods were drawn under panchnama dt. 02.04.2012 and sent for testing to the Deputy Director, Gems & Jewellery Council, Jaipur under Test Memo No.01/2012. The Gem Testing Laboratory, Jaipur in their report dated 04.04.12 submitted that goods are cubic zirconia, Wt. 0.15 cts, colourless, with round brilliant cut. After receiving above report from Gem Testing Laboratory, the matter was referred to Hqrs. Preventive Branch after drawing size wise samples under Panchnama dt. 10.5.12. The valuation of above goods was done by the empanelled valuer Shri Rajesh Dhaman....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ough e-mail from the manufacturer company was not applicable to subject goods in view of test report dated 04.04.2012. 9. I further find that the genuineness of the price list of "Star" quality / grade of Cubic Zerconia of M/s. Preciosa has not been challenged by the respondent. The prices of round white Cubic Zerconia of "Star‟ grade of sizes 1.10 mm to 2.80 mm in the said pricelist was the actual transaction value of subject goods in terms of Section 14(1) of the Customs Act, 1962 read with Rule 3 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 for the purpose assessing imported goods. I further find that the goods were having round and brilliant Cut associated with "Star" quality / grade, they had sparkling brilliance and high optical purity as publicized for "Star‟ quality and were colourless / white testifying purity of a superior stone. Thus, the subject goods were to be assessed under Rule 5 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 as transaction value of similar goods (i.e. "Star" quality ./ grade) sold for export to India was available with the customs authority as the prices have been obt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....but a selected few and these are left over goods. It was explained that value of goods has nothing to do with the 'Star' goods of the company. He supported the order of the Asstt. Commissioner which has primarily relied upon the Valuers' report as also test report of Deputy Director of Gem and Jewellery Export Council. 7. Learned DR appearing for the Revenue submits that in terms of said test report of Gem Jewellery Export Council, the goods are colourless and type of cut is 'round brilliant cut'. As observed by Commissioner (Appeals), the round brilliant cut is associated with 'Star' quality / grade. Revenue has procured the price list of Star grade from the exporter of the goods and has adopted the value as reflected in the said price list. As such, submits the learned DR that impugned order of Commissioner (Appeals) allowing the appeal is sustainable. 8. After carefully considering the submissions made by both the sides, we note that the goods imported by the appellant stand described in the invoice as 'MCC cubic zirconia round white'. The same description stand reflected by the appellant in Bill of Entries. From the record, we note that as a result of communication between th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h product. These goods are left over goods and are of inferior quality and priced at lower than their 'star grade goods'. The appellate authority has not discussed the said certificate of the exporter, even though the same was placed before him. It is also stated that there is no price list issued by the export company for the said MCC grade of the Zerconia. The price list relied upon by the Commissioner (Appeals) was admittedly the price list of the 'Star' grade, and is irrelevant for the purpose of valuing the present consignment. According to the learned advocate even that price list was not disclosed to the appellants for their comments. 10. Apart from the above, we also note that the opinion of the Department's Empanelled Valuer was also taken by the Revenue showing the maximum sale value of the goods as Rs. 4,92,000/-. The Assistant Commissioner after deducting the local tax, margin of profit, duty element and other expenses have come to the conclusion that the value of the goods should be around Rs. 3,64,636/- whereas the importer has declared the value as Rs. 3,57,494/- and as such there is no difference between the two values. The appellate authority has no where discusse....