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TMI Blog2024 (9) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... d to as M/s. 'MVR) was indulging in mis-declaration of value and had evaded Customs duty on import of 'Nutritional Supplements' through the Kandla SEZ. 2. On the basis of the above intelligence, the premises of the Custom House Agent (CHA) of the importer, M/s A.D. Mehta Clearing Agency situated at 1621-22, Kasezia Building, Gandhidham (Kutch)- 370230, Gujarat was searched by the officers of DRI on 16.01.2019 under the provisions of Section 105 of the Customs Act, 1962 under regular panchanama dated 16.01.2019. During the course of the search, the officers of DRI withdrew certain documents under the reasonable belief that they were necessary for the investigations being carried out against the importer MVR. 3. During the course of investigations, the under-valuation & mis- classification of goods imported by MVR was noticed. The Statements of Smt. Manisha Umashankar Bathina, Proprietor of MVR was recorded on 22.04.2019 & 18.10.2021 under the provisions of Section 108 of the Customs Act, 1962. In order to have a fair idea of the rate of the products imported, statement of Shri Nitin Ghanshyam Modi, Director (Finance) of M/s. Glanbia Performance Nutrition India Pvt. Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imports made by M/s. MVR from the said suppliers were found to be mis-declared by the department as also admitted in respect of the other consignments. In view of this, the valuation of all the imports made by M/s. MVR were also checked. On comparing the values declared by the importer initially at the time of import as well as the values admitted by the Proprietor of M/s. MVR during the course of investigation, with the contemporaneous values of identical products, it was found that there was a huge difference in these values. It was also seen that though the importer had admitted to the undervaluation of the imported products, the values admitted by MVR were found less when compared to the contemporaneous imports made by other importers during the relevant period. In view of the above, these values were not acceptable as the transaction value under Section 3 of the CVR, 2007 and therefore it was necessary to be ascertained from Rules 4 to 9 of the CVR, 2007, to arrive at the correct valuation of the all the other products imported by MVR. 3.3 It was found that the importer had already admitted that the 'Nutritional Supplements' imported by them have been manufactured in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the quality of the products manufactured by M/s Glanbia Performance Nutrition Inc., USA is the same when imported to India or UAE. He has further confirmed that as the quality of the products manufactured by M/s Glanbia Performance Nutrition Inc., USA is the same, the cost of the product is substantially the same wherever it is sold. Further, the authorised importer/distributor of Nutritional Supplements of brand 'MuscleTech' manufactured by lovate Health Science, USA was one M/s Muscle Pro Nutrition till around 2018-19 and thereafter the distributor was one M/s. Sri Balaji Overseas. It was found that in these cases, these manufacturers have appointed their authorised importers/distributors to sell their products in India. It was found that the values of the imports made by their authorised distributors are the fair market value of that particular brand. Thus, it appears that the values at which the identical goods bearing the same brands have been imported by the above distributors of the respective brands are the fair value of those brands. These imports were also found to be contemporaneous in nature to the imports of the same brands made by M/s. MVR. 3.5 Similarly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssable Value (In. Rs.) Ascertained Duty (In. Rs.) Differential Duty (In Rs.) Annexure A 1,53,84,016 1,03,92,210 3,64,72,498 2,46,37,902 1,12,42,691 Annexure B 96,002 64,851 1,87,331 1,02,024 37,173 TOTAL 1,54,80,017 1,04,57,061 3,66,59,829 2,47,39,926 1,42,82,865 4.3 Accordingly, after investigation, the declared value and classification of the imported goods were challenged vide Show Cause Notice bearing No. GEN/ADJ/COMM/257/2022-Adjn-O/o Commr- Cus-Kandla dated 23.06.2022. The charges framed under the said Show Cause Notice were as under: i. The declared assessable value of Rs. 1,54,80,017/- (Rupees One Crore Fifty Four Lakhs Eighty Thousand And Seventeen Only) in respect of the import of 'Dietary/Food/ Nutritional Supplements' by M/s. MVR, as detailed in Annexure A & Annexure B to this Show Cause Notice should not be rejected under the provisions of Rule 12 of the CVR, 2007 read with the Section 14 (1) of Customs Act, 1962; ii. The ascertained assessable value calculated in respect of the import of Dietary/Food/ Nutritional Supplements' by M/s. MVR amounting to 3,66 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the dispute involved is of valuation as well as on the issue of classification. Department had desired classification under Tariff Heading 21069099, whereas, they had indicated a Tariff Heading 21061000 for contain products as they did not contain any protein. The Learned Advocate stated they have agreed for classification proposed by the department for 16 products involved as they admitted they contained proteins contained concentrate and texture proteins substances and were thus classifiable under CH 2169099 and also extent of undervaluation was also admitted by them in the statement. That the department generally had failed to follow the Customs Valuation Rules and rejection of transaction value is improper and so is re-opening of assessment. The Authorized Representative on the other hand emphasises that the case was made out on the basis of admission of the proprietress of the concerned appellant who also admitted that number of goods did not have protein and also branded goods were undervalued vis-a-vis importers who were directly importing the goods for USA. 7. We have considered the rival submissions. We find that the order does not deal with various issues raised by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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