2001 (11) TMI 728 - AT - Customs

Summary

Issues Involved:
1. Assessment of Bill of Entry and valuation of goods.
2. Issuance and validity of the show-cause notice.
3. Classification and licensing requirements for the imported goods.
4. Confiscation, redemption fine, and penalty imposed on the appellant.

Summary of Judgment:

1. Assessment of Bill of Entry and Valuation of Goods:
The appellant filed Bill of Entry No. 791 on 12-5-98 for the clearance of 'Damar Batu with dust' imported under Invoice No. 373/97. The Commissioner of Customs enhanced the value from U.S. $ 480 to U.S. $ 600 per ton. The goods were seized by DRI on 21-4-98. The Tribunal found it unclear how the Commissioner assessed the Bill of Entry at U.S. $ 600 when the goods were under seizure and investigation.

2. Issuance and Validity of the Show-Cause Notice:
A show-cause notice was issued on 16-10-98 proposing to enhance the value further to U.S. $ 710 and to confiscate the goods u/s 111(d) for being prohibited for import. The Tribunal noted that the show-cause notice was issued after the assessment of the Bill of Entry u/s 47, which was contested by the appellant. The Tribunal referenced case laws to uphold the validity of the show-cause notice despite the assessment.

3. Classification and Licensing Requirements for the Imported Goods:
The goods declared as 'Damar Batu' were found to be 'Sarjarasam' (Gum Damar) based on scientific references. The import of such crude drugs required an Actual User Licence, which the appellant did not possess. The Tribunal agreed with the classification but found no evidence of mis-declaration by the importer.

4. Confiscation, Redemption Fine, and Penalty:
The Additional Commissioner confiscated the goods u/s 111(d) and (m), enhanced the value to U.S. $ 710, and imposed a fine of Rs. 25,000/- and a penalty of Rs. 15,000/-. The Tribunal found no grounds for confiscation under Section 111(d) as there was no mis-declaration by the importer. The Tribunal also noted that the valuation at U.S. $ 600 had attained finality and could not be further contested.

Conclusion:
The appeal was allowed partly. The Tribunal upheld the valuation of U.S. $ 600 per MT but set aside the order of confiscation, redemption fine of Rs. 25,000/-, and penalty of Rs. 15,000/-. The appeal was disposed of in these terms.