2007 (8) TMI 111 - AT - Customs

Valuation(Customs) - Revenue enhanced the value of the old and used photocopier imported by the appellant on the basis of the import of same model made in prior year - the photocopier doesn t mention the year of manufacture and also not reconditioned, hence enhancement not sustained on the basis of other import

Summary

Issues:
1. Declaration of value for imported old and used plain photocopier
2. Confiscation of goods for being non-freely importable capital goods
3. Valuation of the imported goods based on comparison with imports at Calcutta port

Analysis:
1. The appellant challenged the order-in-appeal regarding the declaration of value for imported old and used plain photocopier. The Revenue contended that the declared value was incorrect, leading to the issue of whether the goods were capital goods freely importable or not.

2. Referring to a decision by the Hon'ble Kerala High Court, it was established that second-hand photocopier machines are not freely importable capital goods. Consequently, the impugned order confiscating the goods was deemed valid based on this ground.

3. Regarding the valuation of the goods, the appellant argued that the goods were old and used, with no year of manufacture available. The appellant opposed the enhancement of value based on imports at Calcutta port by other importers, asserting that the comparison was invalid as the conditions of the goods were not the same.

4. The Revenue justified the value enhancement by pointing out higher declarations for the same models at Calcutta port and the appellant's own imports at a higher value. However, the Tribunal found that the absence of evidence regarding the condition of goods imported at Calcutta rendered the basis for enhancement unsustainable.

5. As the year of manufacture was unknown and the imported photocopiers were not reconditioned, the Tribunal concluded that the enhancement of value was not justified. Consequently, the redemption fine was reduced to Rs. 50,000/- and the penalty to Rs. 25,000/-, while upholding the impugned order in all other aspects. The appeal was disposed of accordingly.