1984 (8) TMI 344 - AT - Customs

Summary

Issues Involved:
1. Valuation of imported goods.
2. Eligibility of importation under Open General Licence (OGL).

Detailed Analysis:

1. Valuation of Imported Goods:

The appellants contested the valuation of two old re-conditioned printing machines imported from Sweden. The Collector had increased the declared value from Rs. 2,64,534 to Rs. 8 lakhs, alleging under-valuation. The appellants argued that the valuation was arbitrary and lacked valid reasons. They provided comprehensive documentary evidence, which was dismissed by the authorities without cogent reasons. The Collector compared the appellants' machines with a similar import by M/s. Sachdeva Offset and Packing Industries, valuing the machines at Rs. 4 lakhs each. However, the appellants highlighted significant differences between the two imports, such as the country of origin, re-conditioning costs, and residual life. The Tribunal found that the Department failed to provide sufficient evidence to support the charge of under-valuation, emphasizing that the burden of proof lies with the Department. Consequently, the Tribunal set aside the Collector's valuation and directed that the declared value by the appellants be accepted.

2. Eligibility of Importation Under Open General Licence (OGL):

The appellants argued that their importation was covered under the 1982-83 Import Policy's OGL. They had entered into a firm contract and opened a letter of credit on 28-2-1983. The shipment was made in August 1983, within the allowable period under the saving clause 7 of Appendix 10 of the Import Policy. The Collector had questioned the validity of the firm contract due to the condition of inspection prior to dispatch. The Tribunal clarified that the inspection condition pertains to performance and does not negate the existence of a concluded contract. The Tribunal found that the appellants met all the conditions of the saving clause, thus their importation was eligible under OGL. The Tribunal held that the Collector's finding was unsustainable in law and directed that the relief be granted to the appellants.

Conclusion:

The appeal succeeded on both counts:
- The declared value of the imported goods was accepted due to insufficient evidence of under-valuation.
- The importation was deemed eligible under OGL as per the 1982-83 Import Policy.

The Tribunal directed that the relief be implemented expeditiously, as the goods were under detention.