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2013 (8) TMI 546 - AT - Customs


Issues:
1. Enhancement of assessable value of imported goods
2. Imposition of redemption fine and penalty
3. Mis-declaration of goods and value
4. Compliance with import policy and guidelines
5. Confiscation of goods under Customs Act
6. Admissibility of redemption fine and penalty

Enhancement of assessable value of imported goods:
The appellant challenged the order enhancing the assessable value of imported old and used tyres from Rs. 36,09,780 to Rs. 55,03,852. The department based the increase on a Chartered Engineer Certificate, raising the value of certain tyre sizes. The appellant argued that the comparison with NIDB data was flawed and that the estimated value was solely based on the engineer's certificate. The appellant contended that no mis-declaration occurred, and the department did not question the invoice's authenticity or payment terms. However, the Commissioner upheld the enhanced value determination under Customs Valuation Rules, leading to the imposition of a redemption fine and penalty.

Imposition of redemption fine and penalty:
The appellant disputed the confiscation of the tyres and the imposition of a redemption fine of Rs. 13,76,000 and a penalty of Rs. 5,50,000. The appellant argued that the imported tyres were valued correctly, and no mis-declaration took place. The appellant emphasized that this was their first import, and the penalty was excessive. The revenue contended that the goods were undervalued and imported against import policy provisions, justifying the confiscation and penalties under the Customs Act. The adjudicating authority upheld the redemption fine and penalty, citing non-compliance with import regulations and undervaluation.

Mis-declaration of goods and value:
The appellant defended against the mis-declaration allegation, stating that the department did not dispute the invoice's authenticity or payment compliance. The appellant highlighted that the price was the sole consideration of sale, and no special circumstances existed to warrant mis-declaration allegations. However, the Commissioner found discrepancies between the declared value and the engineer's evaluation, leading to the rejection of the declared value and subsequent re-determination based on the engineer's assessment.

Compliance with import policy and guidelines:
The issue of importability of old and used tyres was examined based on specific guidelines requiring a minimum residual life and usage percentage before import. The Commissioner issued guidelines regarding the import of such tyres, emphasizing the need for a Chartered Engineer certificate to determine compliance. The appellant's failure to produce a valid license for importing restricted items led to the classification of the goods as smuggled, resulting in confiscation under the Customs Act.

Confiscation of goods under Customs Act:
The Commissioner determined that the imported tyres were not hazardous waste but restricted items requiring a valid license for importation. As the appellant failed to produce a license, the goods were considered smuggled under the Customs Act, justifying their confiscation under relevant sections of the Act. The Commissioner also imposed a redemption fine and penalty for non-compliance with import regulations and undervaluation.

Admissibility of redemption fine and penalty:
The Tribunal upheld the Commissioner's decision, dismissing the appeal for lack of merit. The Tribunal found no grounds to interfere with the imposition of the redemption fine and penalty, considering the non-compliance with import regulations and the undervaluation of the imported goods. The appellant's waiver of the right to challenge the proposed action further supported the decision to uphold the redemption fine and penalty.

 

 

 

 

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