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Issues:
Challenge to enhancement of value of imported goods based on Chartered Engineer's certificate. Analysis: The appeals involved a common issue related to the challenge against the enhancement of the value of imported old and used photocopier machines. The appellants contested the impugned order regarding the value enhancement, arguing that the value was increased based on a Chartered Engineer's certificate that did not specify the year of manufacture of the goods. They emphasized that without knowing the year of manufacture, there was no valid ground to enhance the value. The appellants relied on previous Tribunal decisions to support their contention, highlighting cases where similar enhancements were set aside due to lack of sufficient reasoning in the certificates provided. The Revenue, on the other hand, defended the value enhancement based on the Chartered Engineer's certificate, asserting that the value was appropriately increased. However, the Tribunal noted that the certificate did not include the year of manufacture, which is crucial for determining the value of imported goods. Additionally, there was no evidence of contemporaneous imports to support the enhanced value. The Tribunal referenced previous cases where similar value enhancements were rejected, emphasizing the importance of valid reasons for rejecting transaction values under the Customs Act. In light of the above considerations and precedents, the Tribunal concluded that the order enhancing the value of the imported goods was unsustainable and set it aside. The appellants also raised concerns regarding penalties and redemption fines, highlighting the shift in Tribunal views regarding the classification of old and used photocopiers as consumer goods following a DGFT Policy Circular. Consequently, the redemption fine and penalty were reduced to Rs. 1 lakh each in both cases. The appeals were disposed of based on the outlined decisions and considerations. In summary, the judgment addressed the challenge to the enhancement of the value of imported goods, focusing on the significance of the Chartered Engineer's certificate, the absence of the year of manufacture, and the lack of supporting evidence for the increased value. The Tribunal's decision to set aside the value enhancement was supported by previous rulings emphasizing the need for valid reasons to reject transaction values under the Customs Act. Additionally, the reduction of penalties and fines reflected the evolving interpretation of old and used photocopiers as consumer goods in light of relevant policy circulars.
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