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Issues involved: Reclassification of imported goods, misdeclaration of description and value, confiscation of goods, penalty imposition, assessment of duty based on declared value, comparison with contemporaneous imports, application of Customs Valuation Rules.
Reclassification and Misdeclaration of Goods: The Commissioner reclassified imported goods under CTH 2712 20 90, demanded duty of over Rs. 36 lakhs, and confiscated the goods due to misdeclaration of description and value. Samples tested showed oil content at 0.7%, contradicting the declared 3-5%. Adjudicating authority determined assessable value @ US $ 1400 CF per MT under Rule 5 of Customs Valuation Rules, 2007. Appeals filed against these decisions. Comparison with Contemporaneous Imports: Assessee argued for assessment based on contemporaneous imports of paraffin wax with 0.5% oil content cleared at Chennai Port at US $ 700-775 per MT. Commissioner's rejection of declared value and reclassification under CTH 2712 20 90 questioned. Details of NIDB data on contemporaneous imports not provided to assessee. Counsel cited Tribunal decisions in support. Commissioner's Value Enhancement Decision: Enhancement of unit price from US $ 700 to US $ 1400 per MT based on NIDB data for April 2008. Assessee disputed reliance on values from China and Denmark, citing quantity differences and lack of comparability with their import from Egypt. Allegation of denial of natural justice due to undisclosed NIDB data. Commissioner directed to redetermine duty amount, re-quantify redemption fine, and address penalty issue afresh without exceeding show-cause notice scope. Conclusion: Appeals disposed of with directions for redetermination of duty, re-quantification of redemption fine, and fresh consideration of penalty issue by the Commissioner. Confiscation and classification of goods upheld, while value enhancement decision set aside for reassessment.
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