2007 (5) TMI 520 - AT - Customs

Valuation - SEZ Unit - Held that - since the appellants have made a declaration well in advance on the strength of a letter received from the supplier regarding the mistaken supply, their request for re-export of the CFL supplies to them is reasonable and deserves to be considered. As regards the alleged under valuation of the impugned batteries, the same is of an academic interest as imports by the SEZ unit is not required to pay duty and ultimately, the appellants are seeking export of the same. Appeal allowed.

Summary

Issues:
1. Valuation of imported batteries and anti-dumping duty.
2. Receiving unsolicited consignment of CFL.
3. Request for re-export of CFL and batteries.

Analysis:
1. The Appellants, a trading unit in a Special Economic Zone, imported batteries for trading purposes. Customs Authorities questioned the declared value, confiscated the batteries, and ordered payment of anti-dumping duty. The Appellants also received an unsolicited consignment of CFL, which the supplier confirmed was sent by mistake. The Appellants informed Customs Authorities about this mistake before taking delivery. The Tribunal noted that as the SEZ unit, the Appellants were not required to pay duty, making the valuation issue academic. The Tribunal allowed the Appellants to re-export the CFL and batteries, setting aside the impugned order.

2. The Tribunal considered the Appellants' request for re-export of the CFL, which was received mistakenly. The supplier's letter confirming the mistake was crucial in this regard. The Tribunal found the Appellants' request reasonable, given the circumstances of the mistaken supply. The Appellants were granted permission to re-export the CFL within six weeks from the date of the order.

3. The Appellants' consultant requested six weeks to complete the re-export process, which was granted by the Tribunal. Both parties agreed to this timeline. The Tribunal allowed the Appellants to complete the re-export of both the CFL and batteries within the specified six-week period. The Appeals were allowed in favor of the Appellants, considering the unique circumstances of the case.

This judgment highlights the importance of timely communication with Customs Authorities regarding unsolicited consignments and the implications of SEZ units in import matters. The Tribunal's decision to allow re-export based on the supplier's confirmation of the mistake showcases a balanced approach to resolving import-related issues in line with SEZ regulations.