2006 (1) TMI 387 - AT - Customs

Summary

Issues: Mis-declaration of imported goods, rejection of declared value, reliance on foreign authorities' information, application of Customs (Valuation) Rules.

In this case, the appellant imported goods declaring them as toys and dolls made of plastics with a value of Rs. 8,35,964. However, upon investigation, the actual value was found to be Rs. 25,71,726. The adjudicating authority confiscated the goods, imposed a redemption fine of Rs. 10 lakhs, confirmed duty of Rs. 5,20,729, and imposed a penalty of Rs. 10 lakhs on the appellant for mis-declaration. The appellant argued that there was no evidence of mis-declaration and cited precedents to support their case, emphasizing that reliance on information from Hong Kong Customs was insufficient to penalize them. The Revenue contended that the value declared by the appellant was false, as confirmed by information from Hong Kong Customs, indicating that the invoices provided were inaccurate and issued at the request of the Indian importer. The Revenue relied on tribunal decisions to support their stance that the actual price should be considered, not the declared value. The Tribunal found that the appellant's declared value was rightly rejected based on information from Hong Kong Customs, which revealed discrepancies in the invoiced amounts and actual CIF values. The Tribunal dismissed the appeal, stating that the appellant's arguments and the non-penalization of the exporter were not sufficient to overturn the decision based on the information provided by the foreign authorities. The Tribunal concluded that the appellant's appeal lacked merit and upheld the decision of the adjudicating authority.