2009 (4) TMI 581 - AT - Customs

Valuation - Transaction value - Loading of value - misdeclaration of description of the goods as Cassia broken instead of Cassia whole

Summary

Issues: Misdeclaration of goods description, enhancement of value, confiscation, penalty reduction.

Misdeclaration of Goods Description:
The case involved the misdeclaration of goods description in a Bill of Entry filed for clearance of goods imported from Hong Kong. The goods were described as "Cassia broken old crop Anchor brand" but were found to be "Cassia whole" upon examination, leading to their seizure. The Commissioner rejected the transaction value due to misdeclaration and increased the value based on contemporaneous imports of similar goods of Chinese origin. The appellants contended that the enhancement of value was unjustified as there was no evidence to show the imported goods were identical to those of Chinese origin. The Tribunal agreed with the importers, emphasizing the fluctuation in agricultural commodity prices and set aside the enhancement, accepting the value declared by the appellants.

Confiscation and Penalty Reduction:
Although the enhancement of value was overturned, the goods were still liable for confiscation under Section 111(m) due to misdeclaration. The Tribunal reduced the fine in lieu of confiscation to Rs. 60,000 and the penalty to Rs. 30,000, representing 10% and 5% of the value of the goods, respectively. This reduction was based on precedent decisions of the Tribunal and aimed to balance the penalty imposed on the importers.

In conclusion, the appeal was partly allowed by setting aside the enhancement of value and accepting the value declared by the importers. However, the goods remained liable for confiscation due to misdeclaration, with the fine and penalty reduced in consideration of the circumstances and Tribunal precedents.