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TMI Blog2023 (11) TMI 1175X X X X Extracts X X X X X X X X Extracts X X X X ..... ill-of-Entry No. 3281805 dated 16.09.2013 for clearance of 2960 nos. of goods declared as "Maxx Air Pedestal Fan with essential spares" under CTH 84145130 which were supplied by a Hong Kong based company, the value of which was declared at USD 39042.40/- (FOB). The assessable value of the goods was INR 27,29,010/- and the unit price declared was USD 13.19/- per piece and the declared Maximum Retail Price (MRP) was INR 2100/- per piece. The said goods were imported claiming exemption from payment of Special Additional Duty (SAD of 4%) in terms of Customs Notification No. 21/2012 dated 17.03.2012 (Sl. No. 2). 2.2 There is no dispute that the Bill-of-Entry was assessed and the consequential duty demand of Rs.7,80,482/- was paid by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed inter alia proposing to confiscate the goods in question under Section 111(m) of the Customs Act, 1962 for mis-declaring the RSP, apart from penalties under Sections 112(a) and 114AA ibid. 6. It appears that the appellant filed a suitable reply to the above Show Cause Notice primarily contending that there was no mis-declaration as alleged, but however, the same was unintentional and due to communication gap between the appellant and their supplier / vendor. 7. During adjudication, the original authority having considered the explanation of the appellant and after hearing, vide Order-in-Original No. 22328/2013 dated 29.10.2013 ordered rejection of the declared RSP while ordering to re-assess the Bill-of-Entry at INR 2650/- per piece, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of confiscating the goods in question under Section 111(m) of the Customs Act, 1962 is correct? and (2) Whether the imposition of penalties under Sections 112(a) and 114AA ibid. is justified? 10. Facts are not in dispute. There was differential duty worked out, which was accepted and also paid by the appellant-importer. From the documents placed on record, we do not find any mala fides on the part of the appellant-importer. A perusal of the e-mail exchanged between the appellant and their vendor clearly indicates the request insofar as the MRP is concerned, but however, it was perhaps the mistake of the vendor/supplier in not effecting the required RSP tag. No doubt, the original price as per the purchase order, which is placed at page ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment may allow by notification in the Official Gazette." The requirement of Section 4A(1) ibid. is the declaration on the package the retail sale price (RSP) of the goods and sub-section (2) thereof states that such declared value shall be deemed to be the retail sale price (RSP) declared on such goods less such amount of abatement, if any. The price tag admittedly on the package was the maximum retail price (MRP) displayed, which cannot be the RSP, since RSP may not always be the MRP and MRP also may not always be the RSP. 12. The above clearly takes the case of the appellant out of the mischief of Section 112(a) since the alleged mis-declaration would not per se justify confiscation of the goods in question under Section 111. This is b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 114AA of the Customs Act are ordered to be deleted. 15.1 Admittedly, the importer claimed exemption from 4% SAD which was ultimately denied as there was alleged mis-declaration of MRP. In any case, the differential duty was duly remitted by the appellant and moreover, we find that the MRP affixed on the goods imported (of INR 2100) was never the agreed amount; the purchase order gives a different amount, which was sought to be revised as per the new MRP list at INR 2650/-. Hence, how the MRP of INR 2100/- was affixed lacks any support since the same was never agreed upon nor is there any discussion, other than the e-mail dated 14.09.2013. The logic at paragraph 11 above of this order is also required to be read and understood here. 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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