2001 (10) TMI 1087 - AT - Customs

Summary

Issues:
1. Assessment of market value and assessable value of imported marble blocks.
2. Determination of redemption fine and penalty imposed by the Commissioner.
3. Delay in clearance of goods and application for clearance pending appeal.
4. Basis for the sale price adopted by the Commissioner.
5. Decision on clearance of goods and appeal process.
6. Request for out-of-turn hearing based on the value of the goods.

Analysis:

Assessment of Market Value and Assessable Value:
The importer filed an application regarding the import of raw/rough marble blocks for processing into slabs. The dispute arose when the Department contested the transaction value of US $95 per metric ton (PMT), seeking to increase it to US $300 PMT. The Commissioner relied on market inquiries and previous decisions to fix the redemption fine at Rs. 88 lakhs and imposed a penalty of Rs. 8.30 lakhs. The importer argued against the increased assessable value, citing previous cases where values were enhanced to US $300 PMT. The Department defended its position, asserting the validity of relying on market inquiries and previous decisions.

Determination of Redemption Fine and Penalty:
The Counsel for the importer requested clearance of goods, highlighting the delay in the process despite waiver of the show cause notice and agreement on the assessable value enhancement. The Commissioner's calculation of the gross profit and redemption fine was scrutinized. The Tribunal observed discrepancies in the Commissioner's approach, emphasizing the importance of using the correct value for profit determination. The Tribunal noted the absence of a clear basis for the sale price adopted by the Commissioner and directed the importer to deposit Rs. 14 lakhs towards fines and penalties.

Delay in Clearance of Goods and Application for Clearance Pending Appeal:
The Tribunal acknowledged the importer's regular import activities and directed clearance of goods upon depositing Rs. 14 lakhs in cash. The delay in clearance was attributed to procedural inefficiencies, prompting the Tribunal to allow clearance with a bond for future fines and penalties.

Basis for the Sale Price Adopted by the Commissioner:
The Tribunal questioned the rationale behind the sale price of Rs. 25,000 per ton set by the Commissioner, noting the lack of market-based evidence supporting this value. The Tribunal considered the origin and quality of the marble blocks in determining the reasonableness of the redemption fine.

Decision on Clearance of Goods and Appeal Process:
Considering the importer's history of compliance with customs and excise duties, the Tribunal permitted clearance of goods upon depositing Rs. 14 lakhs and furnishing a bond for potential fines and penalties. An out-of-turn hearing was granted after the deposit.

Request for Out-of-Turn Hearing Based on the Value of Goods:
The Tribunal accepted the importer's request for an expedited hearing based on the value of the goods, contingent upon the deposit being made.