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Issues Involved:
Whether the value declared by M/s. New Janata Traders is to be enhanced for the purpose of assessment of Customs duty. Analysis: The appeal filed by M/s. New Janata Traders questioned the enhancement of the declared value for the assessment of Customs duty. The Appellants imported crystal glassware from Hongkong and declared a CIF value of U.S. $ 5270.04. The Adjudicating Authority enhanced the C&F value to U.S. $ 6181.62 for eight items, confiscating them with an option for redemption and imposing penalties. The Appellants argued that the burden of proof lies with the Revenue to prove under-valuation, citing legal precedents. They contended that the value was enhanced without concrete evidence and that the onus should not have been shifted to them. The Appellants also challenged the imposition of penalties, claiming the assessment was provisional. The Appellants emphasized the lack of discussion on profit margins for the redemption fine, citing relevant case law. The Department, however, maintained that the show-cause notice was issued for mis-declaration of values under the Customs Act, not for short levied Customs duty. They supported their case with documents like price lists and invoices, stating that the Appellants failed to refute this evidence. The Department argued that the burden of proof was not shifted to the Appellants and highlighted that the value was enhanced only for items where evidence was collected. They clarified the circumstances under which the goods were imported and the role of the Hongkong supplier in the transaction. Upon considering both arguments, the Tribunal found that the value of the eight items was properly enhanced based on contemporaneous invoices. The Tribunal noted that the Appellants did not provide evidence to support their declared value and rejected the claim that the burden of proof was shifted. The Tribunal upheld the penalties and confiscation but deemed them excessive, reducing the penalty and redemption fine. Ultimately, the appeal was disposed of with the modified penalties.
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