2014 (9) TMI 103 - AT - Customs

Undervaluation of goods - import of old and used CPU/HDD/RAM, computer cabinet and old and used monitors etc - import in violation of the Foreign Trade Regulations as well as such goods were undervalued - Held that - The goods imported by nature appear to be of economic value without being scrap in absence of any evidence to the contrary. So also in absence of evidence to show that scrap was only imported, the appellant fails to succeed as to the nature of goods. Further, there is no evidence led by the appellant through any ground to consider about different nature of the goods imported. Therefore on that count also ld. Commissioner is correct to hold that there was violation of Foreign Trade Regulation by the appellants in importing the goods - Commissioner found that the goods were of higher value. He has therefore come to the conclusion that reduction of redemption fine from ₹ 2,50,000/- to ₹ 1,50,00/- and penalty from ₹ 75,000/- to ₹ 50,000/- was warranted. This clearly shows his application of mind in consideration of totality of the facts and circumstances of the case - Decided against assessee.

Summary

Issues: Violation of Foreign Trade Regulations, Undervaluation of imported goods, Assessment of goods as scrap, Reduction of redemption fine and penalty

Violation of Foreign Trade Regulations:
The Revenue contended that old and used computer equipment imported by the appellant violated Foreign Trade Regulations and were undervalued. The Chartered Engineer's certificate was considered crucial in determining the proper value of the goods, and the appellant did not provide any evidence to challenge its credibility. The Commissioner (Appeals) upheld the assessment based on the Engineer's certificate, concluding that the appellant had violated the law and undervalued the imports. The Tribunal found no grounds to reverse this decision, as the assessment was impartial and based on reliable evidence.

Assessment of goods as scrap:
The appellant argued that the imported goods were old and used items sold as scrap, thus having no economic value. However, the Tribunal examined the nature of the imported goods and found them to be of economic value based on the Chartered Engineer's certificate. The appellant failed to provide evidence to support their claim that the goods were only scrap, and the certificate's credibility was not challenged. As a result, the Tribunal upheld the Commissioner's decision that there was a violation of Foreign Trade Regulations by the appellant in importing the goods.

Reduction of redemption fine and penalty:
The Commissioner determined that the imported goods were of higher value and reduced the redemption fine and penalty imposed on the appellant. This decision was based on a comprehensive consideration of the facts and circumstances of the case, demonstrating the Commissioner's application of mind. The Tribunal found no reason to disturb this decision, leading to the dismissal of the appeal.

In conclusion, the Tribunal upheld the Commissioner (Appeals)'s decision, emphasizing the importance of complying with Foreign Trade Regulations, proper valuation of imported goods, and the assessment of goods' economic value. The appellant's failure to provide substantial evidence to support their claims resulted in the dismissal of the appeal and the affirmation of the Commissioner's decision.