2007 (3) TMI 48 - AT - Customs

Valuation(Customs) Apellant imported goods from Hong Kong but it of Chinese origin and the lower value declared by direct exporter of Hong Kong, so price of Chinese origin consider for assessment and accordingly penalty imposed by authority

Summary

Issues: Valuation of imported electronic items, rejection of declared invoice value, correctness of deduction for PCBs not supplied.

In this case, the dispute revolved around the valuation of a consignment of electronic items imported by the appellant. The consignment arrived in India under the invoice and packing lists of a company from Hong Kong, which was later found to have procured the goods from China. The customs authorities rejected the declared sale value in the invoice, as it was significantly lower than the actual sale price from China to Hong Kong. The tribunal upheld the rejection, stating that the lower value declared was an attempt to understate the goods' value. Consequently, the demand for customs duty based on the actual price information from the original seller was deemed lawful. However, the tribunal noted an error in the deduction for PCBs not supplied, as it was based on the wrong sale price. The case was remanded for a fresh valuation to determine the duty demand and penalty correctly, emphasizing the need to base the valuation on the original sale price from the seller to the intermediary. The appeal was allowed for reevaluation of duty demand, penalty, and fine, ensuring a fair assessment of the imported goods.