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2004 (3) TMI 480 - AT - CustomsConfiscation of goods - Valuation - Undervaluation - Change of classification of pedal boats
Issues: Classification of imported goods (Pedal Boat and Ceramic Fountain), under-valuation of goods, confiscation under Customs Act, 1962, and imposition of fines and penalties.
The case involved two appeals by a company operating a Water Amusement Park regarding the classification of imported goods: Pedal Boat and Ceramic Fountain. The appellant claimed the Pedal Boat under Heading 9506.11 and the Ceramic Fountain under 6914.00, while the authorities classified them under 8903.10 and 6913.90, respectively. Discrepancies in values and classifications led to differential duty demands and confiscation under Section 111(d) and (m) of the Customs Act, along with fines and penalties. The Commissioner (Appeals) upheld the classification of the Pedal Boats under 8903.99 instead of 8903.10, considering them as vessels for pleasure or sports. The misclassification under 9506.11 was not considered a misdeclaration. Regarding the Ceramic Fountain, the Commissioner upheld the classification under 6913 based on HSN, considering them as outdoor ornaments for amusement parks, leading to confiscation due to lack of import license. Upon further review, it was found that the Pedal Boats should indeed be classified under 8903.99 as per Chapter Note 8903, covering vessels for pleasure or sports. The misclassification under 9506.11 was deemed acceptable. For the Ceramic Fountain, the classification under 6913 was challenged as the goods were not solely ornamental but served a functional purpose in amusement parks. The correct classification was deemed to be under 6914.00, leading to the reversal of fines and penalties imposed. In conclusion, the appeals were allowed, and the Pedal Boats were to be cleared under 8903.99, while the Ceramic Fountain was to be classified under 6914.00 without any value addition. Fines and penalties were set aside or reduced accordingly based on the revised classifications and valuation of the imported goods.
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