TMI Blog2017 (9) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... his contention that the magnetic properties of the imported goods would deteriorate over long periods of storage - the prayer for interim relief should be considered sympathetically and at the same time protecting the interest of Revenue to the extent possible and the resolution of this dispute will require denovo consideration of the matter by the adjudicating authority. Provisional release of the impugned goods will be allowed to the appellant on payment of deposit - For the purpose of assessment, the original authority will immediately take up denovo adjudication in the matter for arriving at the assessable value in respect of imported goods for the purpose of levy of customs duty by way of duties of customs - appeal allowed in part and part matter on remand. - C/EH/40633/2017 and C/40776/2017 - Final Order No. 41911 / 2017 - Dated:- 28-8-2017 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri K.G. Ragunath, Advocate for the Appellant Shri B. Balamurugan, AC (AR) for the Respondent ORDER Per Bench The facts of the case are that appellants filed Bill of Entry No. 7696971dated 3.12.2016 for clearance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over a period of time. Therefore, seeks for early disposal of the appeal. Taking all factors 'into consideration and with the consent of both sides, the appeal per se was taken up for final disposal. 4.1 The Ids Counsel made further written and oral submissions which can be broadly summarized as follows:- (i) The appellant had imported different grades and sizes of magnets, and each category of magnet being priced at different rates depending on the category and sizes and quantity, thus in all amounting to a total value of 10,610 USD. (ii) Appraising Group had, without appreciating the fact that the entire consignment comprised of different grades of magnets, each valued at different independent rates, had erroneously presumed that the appellant had declared the entire consignment at an approximate valuation ₹ 70 per kgs, which is not the actual scenario. (iii) The appellant had declared each of the items at its actual rates, e.g. Item no. 14 of the commercial invoice is valued at USD 3,116, and in contrast, item No. 22 of the commercial invoice is valued at 5 USD. Hence, the method of valuation adopted by the Appraising Group. (iv) The data of contempora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oraneous prices adopted by the department is not of comparable products. On the other hand, appellants themselves have gathered details of contemporaneous imports which have been placed in pages 3 to 32 of compilation (Book - I), submitted during the hearing. Perusal of these contemporaneous imports would indicate that the department has not adopted correct contemporaneous data, which has resulted in injustice to the appellant. 4.5 The commercial invoice of the imported consignment, Invoice No.16-S-CHN-03 dated 16.11.2016 of foreign supplier has given details, inter alia, of 22 types of different of magnets imported in different quantities. The unit price therein has been charged by foreign supplier based on USD 'per piece' and the total amount in respect of each type of magnet has been indicated accordingly. The contemporaneous import data, submitted by them during the hearing, all have prices based on per piece'. However, the department has insisted on converting the number of pieces into kilograms and adopting the assessable value thereafter. When there is an accepted practice of selling and buying of magnets in USD per piece, which has been followed by all othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mits that based on the enhancement of value, the customs duty liability will be in the vicinity of around ₹ 17 lakhs. 6. Heard both sides and have gone through the facts of the case. 7.1 The core issue for decision in this appeal concerns the correctness or otherwise of the method and manner of valuation of imported goods followed by the department. 7.2 The main thrust of the contentions made by the appellant is that the magnets imported are of various types, grades, sizes and quantities, each of them depending upon the composition and have different magnetic properties and magnetic strength. The appellants have contended that the department has however bunched all the magnets together for adhoc uniform enhancement in price. They are also aggrieved that while imports are on per piece' basis, the Department has chosen to adopt 'per kg' basis for determining assessable value. 7.3 While upholding the enhancement of declared values, the lower appellate authority in para 6 of his order has observed that 'the appellant could not demonstrate if there is import of ferrite magnet or magnet (N35 and similar) at nearer the value declared by them by other imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taking into account the various contentions and arguments of both sides. Accordingly, we order as follows:- (a) During the hearing, Revenue has pointed out that as per the enhanced values confirmed by lower authorities the Customs duty liability will be in the vicinity of ₹ 17 lakhs. On the other hand, appellants contend that based on the import values declared by them, the duty liability would only be around ₹ 2.80 lakhs. Taking both these contentions into account, we order provisional release of the impugned goods to the appellant on payment of deposit by the importer-appellant of an amount of ₹ 5,00,000/- (Rupees five lakhs only) including the amount which has already been deposited at the time of filing the appeal before this Tribunal along with a suitable Bond, without bank guarantee for an amount of ₹ 12 lakhs furnishing bond. On compliance with this order of deposit and furnishing of bond, the imported goods shall be released provisionally to the importer-appellant pending denovo adjudication of the matter. (b) For the purpose of assessment, the original authority will immediately take up denovo adjudication in the matter for arriving at the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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