2008 (3) TMI 552 - AT - Customs

Summary

Issues:
Import of metal furniture from France, declaration of value in Bills of Entry, omission of advance payment in declared value, mis-declaration of value, differential duty demanded, confiscation of goods, penalty imposed under Section 112 of the Act.

Analysis:

Issue 1: Import of Metal Furniture and Declaration of Value
The appellants imported metal furniture from France and cleared three consignments on different dates with declared values. The importer later realized that the advance payment made to the supplier was not included in the declared value of the goods. The total value of the goods was declared based on the invoices accompanying the Bills of Entry, with the advance payment of EURO 66279 omitted from the declared value.

Issue 2: Mis-Declaration of Value and Imposition of Penalties
The Asst. Commissioner did not act upon the importer's application for inclusion of the advance payment in the declared value. Instead, a case of mis-declaration of value was framed against the importer. The Commissioner's order demanded a significant differential duty, confiscated a proportionate quantity of goods, and imposed a penalty of Rs. 1 lakh under Section 112 of the Act.

Issue 3: Judicial Review and Decision
After hearing both sides, the Tribunal noted that the importer acted in good faith and promptly sought to rectify the omission of the advance payment in the declared value. The Tribunal found that the importer should have been allowed to amend one of the Bills of Entry to include the omitted amount and pay the differential duty accordingly. The Tribunal set aside the Commissioner's order and directed the proper officer of Customs to permit the necessary amendment in one of the Bills of Entry.

Conclusion
The Tribunal allowed the appeal, directing the Customs officer to permit the amendment of one Bill of Entry to rectify the omission of the advance payment in the declared value. The Tribunal emphasized that the importer should have been given the opportunity to correct the declared value instead of facing penalties for mis-declaration.