9911796707
TMI Blog2001 (2) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... Kong $ 29406.00. The goods were allowed to be cleared by the Customs Officials under P.D. Bonds, after examination. 2.Subsequently, a show cause notice was issued on 20-4-1998 alleging under-valuation of the goods based upon the export declaration furnished by the supplier at Hong Kong, which reflected higher value of the goods. Accordingly, the notice proposed to reject the transaction value under Rule 4 of the Customs Valuation Rules, 1988 and by enhancing the value of the goods, proposed to confirm the demand of duty of Rs. 28,04,831.40. The said show-cause notice culminated into the impugned order confirming demand of duty as proposed in the notice and imposing personal penalty of Rs. 10 lakhs. 3.Arguing on the appeal, Shri B.N. Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tention that the export declaration of the two Hong Kong suppliers differ to the extent of 22%, thus supporting their stand that it is not the actual price at which the goods have been sold to them but the higher price declared to their Government for earning the export benefit. He submits that the Commissioner has accepted the above factual position but has still proceeded to enhance the assessable value on the basis of the said declaration. 5.Shri Chattopadhyay further submits that in addition, they filed details of contemporaneous price at which identical goods were imported by other importers in India. Such prices were at par with the price at which they purchased the goods from their supplier at Hong Kong. As such, it is the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. v. Commissioner of Customs, New Delhi reported in 2000 (123) E.L.T. 1022 (Tri.) = 2000 (39) RLT 381 (CEGAT). 8.Apart from the above, we also find force in the appellants' submissions that the adjudicating authority in spite of accepting the appellants' stand that there is a possibility of the export declaration price being on the higher side, has still adopted the same, thus making the order self-contradictory. In this regard, we would like to reproduce the observations made by the Commissioner in his impugned order :- At the same time it is also quite possible that export"38. declaration prices may not always reflect the price actually paid or payable by the Indian importers to the Hong Kong suppliers. There is also some merit in wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supplier in Hong Kong might have inflated the price to earn incentives on value. If that be so, the export declaration cannot be made the basis for enhancing the value by making general observations that Indian importers are indulging in under-valuation of the goods. In these circumstances, it has to be held that the transaction price, which in any case has not been rebutted by the Revenue by production of any tangible evidence has to be accepted as the correct assessable value. We have also taken note of the Tribunal's decision in the case of Rainbow Gold Products Pvt. Ltd. v. Collector of Customs, Hyderabad reported in 1996 (86) E.L.T. 309 (Tribunal) laying down that photocopy of the export declaration relied on by the Department, wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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