TMI Blog2021 (11) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... d value in consonance with a departmental instruction. The goods so imported were cleared for home consumption. The present proceeding was initiated against the appellant on the allegation that the goods imported by him had been undervalued. It is on record that the bills of entry were assessed by the Proper Officer and the assessable value was determined by him and it was not challenged either by the appellant or by the department. In the course of enquiry, a proforma invoice was recovered showing a different price from that as shown in the invoice submitted at the time of import. However, it is observed that the proforma invoice is not issued in the name of the appellant - The Revenue has not produced any document to prove that there w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods liable for confiscation under Section 111(m) of the Customs Act, 1962. The differential duty of ₹ 13,19,538/- was confirmed in respect of two consignments imported under Bills of Entry No.509039 dated 03.12.2009 and 511166 dated 14.12.2009 under Section 28(8) along with applicable interest. Penalty of ₹ 13,19,538/- was imposed under Section 114A on M/s.Trading Syndicate and a penalty of ₹ 1,80,00,000/- was imposed separately on the proprietor. Redemption Fine of ₹ 5.00 Lakhs has also been imposed in respect of goods confiscated under Bill of Entry No.516628 dated 11.01.2010. On appeal, the learned Commissioner(Appeals) upheld the Order-in-Original and rejected the appeal before him. Hence the present appeal befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some other importer in India and in the name of the appellant. Any value in proforma invoice cannot be taken as the transaction value as price quoted in proforma invoice is never the final transaction value. In the present case, the Revenue has not adduced any evidence that the appellant had made any extra payment over and above the invoice value. 3. In the matter of re-determination of value, the proper officer must proceed sequentially from Rule 5 to Rule 8 of Customs Valuation as has been held in various decisions that Customs Valuation Rules must be proceeded with sequentially. Once transaction value was to be rejected under Rule 4, the Officer must have proceeded first to Rule 5 and then to Rule 6 and onwards. He further submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and stock of goods lying in the office-cum-godown premises were seized/detained. During investigation, proforma invoice No. TSI-090527 dated 27.05.2009 was recovered which contained value of similar item more than that declared in the invoices submitted by the appellant at the time of importation. Based on the value shown in the said proforma invoice, differential Customs Duty of ₹ 13,19,538/- was demanded along with interest at the appropriate rate and imposition of penalty under Section 112(b), Section 114(a) (b) and Section 114AA of the Customs Act, 1962. It was also proposed to confiscate the imported goods under Section 111(m) of the Customs Act read with Section 46(4) Section 14 of the Customs Act. In reply to the said Sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the submission of the Learned Advocate of the Appellant. Judgment of the Apex Court in the matter of Vikara International Vs-Collector -2001 (134) E.L.T. 164(S.C) supports him. 9. The confiscation of the goods and imposition of penalty are consequential to the alleged under-valuation of the imported goods by the appellant. Since we do not find sufficient grounds as required for enhancement of assessable value, imposition of redemption fine in lieu of confiscation under section 125 of the Customs Act, 1962 and imposition of penalty under section 114A on M/s.Trading Syndicate and under section 114AA on Shri Mohinder Goel, proprietor of M/s.Trading Syndicate is not sustainable. The appeal filed by the appellant is allowed with conseque ..... X X X X Extracts X X X X X X X X Extracts X X X X
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