2003 (7) TMI 352 - AT - Customs

Summary

Issues:
1. Valuation of imported goods
2. Confiscation of goods
3. Application of Import Policy

Valuation of imported goods:
The appellant contested the enhanced valuation of a consignment of hair shampoo imported from Germany, arguing that the transaction value should not have been doubted or increased. The appellant highlighted that the impugned order lacked reasons for rejecting the transaction value and that Rule 10A does not mandate replacing transaction value based on market enquiry for first imports at a port. The appellant emphasized the importance of brand familiarity in consumer goods pricing, questioning the basis for valuing the "ODIN" brand against well-established brands like "Nivea." The Tribunal ruled in favor of the appellant, setting aside the order to enhance the transaction value and directing reassessment based on the transaction value.

Confiscation of goods:
The appellant did not contest the confiscation of goods, acknowledging that the import value of the hair shampoo was below the required per unit CIF value of US $5 as per import conditions. The Departmental Representative justified the confiscation, citing severe restrictions on consumer goods imports and the discrepancy in the imported shampoo's value compared to the policy requirements. The Tribunal upheld the confiscation due to the violation of the Import Policy but reduced the redemption fine and penalty, considering the excessive amounts imposed compared to the goods' value.

Application of Import Policy:
The Tribunal confirmed the confiscation of the goods under the Import Policy, which permitted the import of high retail value shampoos only. As the imported consignments' value fell below the policy threshold, the confiscation for violating Section 111(d) was upheld. However, the Tribunal deemed the redemption fine and penalty excessively high relative to the goods' value and reduced both to Rs. 1 lakh each. The Tribunal did not intervene in the orders concerning the imported labels. The appeal was partially allowed with relief granted to the appellant in line with the Tribunal's findings.