2003 (12) TMI 455 - AT - Customs

Summary

Issues:
1. Confiscation of imported old and used wrap knitting machine based on its year of manufacture.
2. Discrepancies in determining the year of manufacture of the machine.
3. Acceptance of declared price based on the year of manufacture for valuation purposes.
4. Reliance on manufacturer's certificate confirming the year of manufacture.
5. Impact of contradictory positions on valuation and age of the machine on duty charges.
6. Rejection of appellant's statement regarding the year of manufacture.
7. Setting aside the confiscation, fine, and penalty imposed by the Commissioner.

Analysis:

1. The case involved the confiscation of an imported old wrap knitting machine by the Commissioner of Customs due to the belief that the machine exceeded the permissible age limit for import without a license. The appellants contested this confiscation, claiming the machine was manufactured in 1991, not in 1981 as determined by the Commissioner.

2. The Commissioner's decision on the year of manufacture was based on two pieces of evidence - a plate affixed on the machine showing 1981 and the electric circuit indicating 1979-80. Additionally, a statement from the Proprietor accepting the machine as old was considered.

3. Despite the determination of the machine's manufacture year as 1981, the declared price based on 1991 was accepted for valuation purposes, leading to discrepancies in the assessment of duty charges.

4. The appellants presented a letter from the original manufacturer confirming the machine's manufacture year as 1991, emphasizing the significance of this certificate as conclusive evidence.

5. The Tribunal found the Customs Authorities' contradictory position on the machine's year of manufacture and valuation unacceptable. The machine's price would differ significantly based on the year of manufacture, impacting duty charges. The manufacturer's certificate and transaction details supported the appellants' claim of the machine being from 1991.

6. The Commissioner's reliance on parts with 1981 markings for repairs was countered by the Tribunal, highlighting the manufacturer's certification as the primary evidence of the machine's year of manufacture.

7. Ultimately, the Tribunal set aside the Commissioner's finding of 1981 as the machine's manufacture year, along with the imposed fine and penalty, ruling in favor of the appellants based on the manufacturer's certificate and the inconsistencies in the Commissioner's decision-making process.