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M/s. Foto Link Versus CC (Port-Import) , Chennai

Valuation of imported goods - used Konica Minilab System comprising of Printer processor and Film processer with standard accessories - Held that: - there will be no other option and further since the value declared by the importer has not been disproved in any other manner by the department, the same will then necessarily have to be accepted as the transaction value of the goods. The import has been made in the year 1996 and this dispute has been festering for over two decades. In fact this is .....

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s the transaction value and calculate duty liability accordingly. This, in our view is the only way to bring closure to this abssymally long pending dispute. - The import/invoice values declared by the appellant as the basis of arriving at the assessable value accepted - appeal allowed - decided in favor of appellant. - C/137/2008 - Final Order Nos. 41917/2017 - Dated:- 31-8-2017 - Ms. Sulekha Beevi, Member ( Judicial ) And Shri Madhu Mohan Damodhar, Member ( Technical ) Shri A.K. Jayaraj, A .....

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ter head of M/s. Konica Singapore Pvt. Ltd. stating that the year of manufacture of the machine is 1989 and the cost when new as Singapore $19500 and estimated present value as Singapore $ 9400. Department sought to ascertain the correctness of the value and genuiness of the Chartered Engineer s Certificate and sent a fax to M/s. Konica Singapore Pvt. Ltd. on 13.09.1996 requesting them to confirm the price of these machines. In reply M/s. Konica Singapore vide their fax message dated 24.09.96, a .....

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ated. The department further adopted the value of the Konica Minilab System in 1989 as USD 59000 and after extending the depreciation of 54% and freight, insurance charges, the assessable value of those goods was worked out to ₹ 9,90,498/-, allegedly resulting in evasion of customs duty to the tune of ₹ 6,17,230/-. In adjudication, the Commissioner vide impugned order dated 21.02.1997 ordered that the assessable value of the imported machinery be fixed at ₹ 9,90,498/- confiscat .....

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n should be given taking the year of manufacture as 1989; upheld the order of confiscation, however reduced the redemption fine to ₹ 1,00,000/-. Penalty was also reduced from ₹ 70,000/- to ₹ 23,000/-. The appellant preferred writ petition No. 488/1999 before the Hon ble High Court of Madras, who in their order dated 25.07.2006 set aside the order of the Tribunal and remanded the matter back to the Commissioner to fix the value of the goods on the basis of the evidence available .....

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e Act, however, gave an option to redeem the goods on payment of fine of ₹ 1,00,000/-, and also imposed penalty of ₹ 25,000/- under Section 112 A of the Act. Hence the matter is once again before this forum as appeal C/137/2008 dated 14.08.2017. 2. When the matter came up for hearing on behalf of the appellant Ld. Counsel Shri A.K. Jayaraj reiterated the grounds of appeal and also made oral submissions which can be broadly summarized as under:- i) Customs Valuation Rules 3 & 4 cl .....

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all manufacturers make only new machines. Therefore, the adjudicating authority ignoring the invoice value on this count is outside the scope of the Valuation Rules. ii) The appellant had already furnished the Chartered Engineer s Certificate from the supplier which clearly confirms the value and the year of manufacture. iii) Price of a new machine cannot be taken up for comparison as new machines are technology upgraded machines and compared to second hand machines of older age group. Therefor .....

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udication dated 04.11.2006 at page 77 to 88 of the appeal paper book, wherein details of Bills of Entry covering imports of identical goods in Chennai Customs House and Bangalore Customs house have been submitted; however, such data has not been taken into consideration by the adjudicating authority. vi) At the time of hearing, the Commissioner had taken note of the invoice which shows the price of the goods as USD 29100 and passed an order of enhancement of value on this basis. Fixation of valu .....

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s set aside by the Hon ble High Court vide order dated 25.07.2005. 3. On the other hand on behalf of Revenue Ld. AR, Shri B. Balamurugan, AC, reiterated the findings in the denovo adjudication and submitted that the adjudicating authority in para-19 of his order had already conveyed his inclination to consider the adopted value indicated in the invoice produced by the importer themselves, and that the assessable value of ₹ 4,08,820/- has been correctly arrived at after granting depreciatio .....

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had ordered the assessable value tobe worked out accordingly and for the film processor on the basis of USD 11650. This ruling of Cestat has further been set aside by the Hon ble High court. However, the Hon ble High Court directed that the Commissioner should fix the value of the goods on the basis of evidence available and the invoices produced by the representatives and any other material that may be produced at the time of hearing. 6. Discernably the prices that USD 29100 and USD 11650 adopt .....

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ontended vide their written submissions dated 4.11.2006 that the said goods had been cleared in these Customs Houses, for more or less the same value declared by them. However, the adjudicating authority, in para-17 of his order has dismissed these evidences on the grounds that the impugned goods were imported in 1996 whereas the details on identical imports given pertain to the years 1998 and 2002, further that that no imports of any two second hand machines can be comparable as the value depen .....

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judicating authority himself in para-17 of the order, no imports of any two imports of secondhand machines can have the same value. At the time of import the Chartered Engineer s Certificate, on letterhead of Konica Singapore had been produced, which had been disregarded as unreliable by the department for various reasons, including the fact that M/s. Konica Singapore Pvt. Ltd in a fax reply had given a higher price of the same machine when new. However nothing prevented the department, if they .....

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