TMI Blog2017 (12) TMI 729X X X X Extracts X X X X X X X X Extracts X X X X ..... etermine the transaction value under Customs Valuation Rules 2007. In the absence of any evidence of contemporaneous imports on record, the enhancement of value is completely unsustainable - penalty set aside. Appeal allowed - decided in favor of appellant. - C/51773-51774/2014 - A/62124-62125/2017-CU[DB] - Dated:- 12-12-2017 - Mrs. Archana Wadhwa, Member (Judicial) And Mr. Devender singh, Member (Technical) Sh. Sudhir Malhotra and Ms. Kanika Malhotra, Advocate for the Appellant Sh. Satyapal, A.R. for the Respondent ORDER Per : Devender Singh These two appeals have been filed by M/s Saraswati Knitwear Pvt. Ltd, Ludhiana (appellant No.1) and Sh. Rajnish Tuli, Director of appellant no. 1 (referred to as appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication proceedings, the value was enhanced to US dollar 2.50 to 2.75 depending on the count and demand of customs duty of ₹ 23,97,913 was confirmed. The penalty of equivalent amount was also imposed on appellant no. 1. The goods were confiscated and allowed to be redeemed on R.F of ₹ 10 lakhs. Penalty of ₹ 5 lakhs was also imposed on appellant no. 2. Besides, penalty of ₹ 5 lakh each was imposed on appellant 1 and 2 under Section 114 AA. No Penalty was imposed on the clearing agent. Aggrieved from the order of the adjudicating authority, both the appellants went in appeal. However, their appeals were rejected by Commissioner (Appeals). Aggrieved from the same, the appellants have filed these appeals. 3. Ld. Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the e-mails received from DRI, Ahmedabad and the proforma invoices pertaining to import of similar goods. These e-mails and proforma invoices of the import of consignments of Polyester Spun Yarn from China indicating gross undervaluation were recovered by DRI, Ahmedabad. In this context, para 8f of the order-in- original is reproduced below:- I have taken a similar view in the case in hand and i consider the rates mentioned in the e-mails dated 04.12.2010 (supra) as well the input received by the DRI that importers were importing Polyester spun Yarn by resorting to gross undervaluation from China and the value declared before the Customs at the port of clearance was ranging between USD 1.3 to USD 1.7 per kg whereas the actual prevailin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hou City, Hebei, China. 7. We also find that the other basis of enhancing the value is the proforma invoices recovered by DRI, Ahmedabad from some other importers from the same overseas supplier. In this proforma invoice bearing no.10SB330 dt. 19.11.10, the FOB price of Polyester Spun Yarn was quoted as US dollar 2.6 per kg. We also find that no evidence of any contemporaneous import has been made the basis of enhancing the value. In the statement dt. 03.03.12, the appellant no. 2 had agreed to pay the duty at the rate of US Dollar 2.6 per kg. before the release of goods on provisional assessment basis. It is mentioned in the statement that loading was done on the basis of parallel invoices. However, we find that loading has actually b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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