2002 (1) TMI 577 - AT - Customs

Summary

Issues:
1. Confiscation of imported goods declared as camera parts.
2. Imposition of penalty under Section 112 of the Customs Act.
3. Increase in assessable value of imported goods.
4. Challenge to the impugned order regarding misdeclaration of goods.
5. Valuation of the imported goods.
6. Delay in issuing the order and its impact on the appellant.
7. Justification of the fine and penalty imposed.

Confiscation of Imported Goods Declared as Camera Parts:
The appeal challenged an order confiscating a consignment declared as camera parts but found to be 2950 cameras imported in SKD condition. The order cited the Import Policy allowing only the import of camera components, not complete cameras. The tribunal agreed with the revenue that the import was indeed of complete cameras in SKD condition, not camera components as declared. The tribunal found no merit in the appellant's argument that wires were necessary for assembly or that technical skill was required.

Imposition of Penalty under Section 112 of the Customs Act:
A penalty of Rs. 4 lakhs was imposed on the appellant under Section 112 of the Customs Act for the misdeclaration of goods. The appellant contended that the imported goods were camera components, not complete cameras. However, the tribunal upheld the penalty, considering the clear findings that the import was of complete cameras in SKD condition.

Increase in Assessable Value of Imported Goods:
The order also included an increase in the assessable value of the imported goods based on the valuation of comparable goods. The tribunal found that parts and assembled goods would have different values, justifying the valuation based on comparable goods. The appellant's argument that their suggested valuation should have been accepted was deemed without legal basis.

Challenge to the Impugned Order Regarding Misdeclaration of Goods:
The appellant challenged the impugned order, arguing that the imported goods were camera components, not complete cameras. They presented a certificate from their foreign supplier stating that wires were needed for assembly. The tribunal, however, found in favor of the revenue's assessment that the import was of complete cameras in SKD condition.

Valuation of the Imported Goods:
The appellant contested the valuation of the imported goods, claiming that similar cameras were priced lower by their supplier. The tribunal upheld the valuation based on comparable goods, rejecting the appellant's claim due to lack of support from actual import data of comparable goods.

Delay in Issuing the Order and Its Impact on the Appellant:
The appellant raised concerns about the significant delay between the passing and issuance of the order, impacting their ability to redeem the goods. The tribunal acknowledged the injustice caused by the delay and reduced the fine and penalty imposed, considering the disposal of the imported consignment at a lower price.

Justification of the Fine and Penalty Imposed:
The tribunal upheld the order on its merits but reduced the fine and penalty to Rs. 1 lakh each, acknowledging that the original amounts were excessive compared to the disposal price of the goods. The appeal was disposed of with the modified fine and penalty amounts.