2015 (10) TMI 268 - AT - Customs

Mis-declaration of Value validity of statement - Imposition of redemption fines and penalty Goods imported by appellants through bills of entry were assessed by Customs noticing misdeclaration of value DRI detected that goods of kind imported by appellant were undervalued causing prejudice to Revenue In adjudication, there was levy of duty on differential value and imposition of redemption fine and penalty Held that - Law is settled that customs officers not being police officers evidence recorded under section 108 of Act cannot be discarded unless it is otherwise found that same suffers from disability prescribed by law No element of disability prescribed by law present in case to discard statement recorded by Customs appellant has also no merit to show that goods were technically tested either by appellant or request to Revenue was made to make reference for technical report before making clearance Therefore becomes difficult in absence of any technical report of examination of goods to disturb valuation Accordingly, undervaluation by assessee established Once allegation is upheld, there shall not be any concession or relief on duty Looking to quantum of duty involved as well as facts and circumstances, it is considered proper to reduce redemption fine Therefore appeal partly allowed only to extent of redemption fine reduced Decided partly in favour of Assesse.

Summary

Issues:
Misdeclaration of imported goods' value, reassessment of imported goods' value, overvaluation, imposition of duty, redemption fine, penalty, statement recorded under Section 108 of the Customs Act, 1962, technical testing of goods, provisional release, market survey for redemption fine, truthful declaration obligation.

Analysis:
The judgment dealt with the misdeclaration of the value of goods imported by the appellant, leading to reassessment due to undervaluation detected by the Directorate of Revenue Intelligence (DRI). The Commissioner (Appeals) initiated proceedings against the appellant for reassessing the value of the imported goods, which resulted in the imposition of duty on the differential value, a redemption fine of &8377; 3 lakhs, and a penalty of &8377; 75,000. The appellant challenged this reassessment, arguing that the authorities relied solely on a statement recorded under Section 108 of the Customs Act, 1962, which was allegedly obtained under duress and at a belated hour. The appellant imported three types of goods, including defective CRGO electrical steel sheet cuttings/strips, and highlighted that similar imports by other importers were not questioned by the department, questioning the basis for the adjudication against the appellant.

The Revenue contended that the appellant accepted the DRI's allegations without objection, cleared the goods by paying the differential duty, and deliberately misdeclared the value in the bills of entry, causing prejudice to Revenue. The Tribunal examined the evidence and found that the appellant failed to substantiate the claim of the statement being recorded under duress. The Tribunal emphasized the significance of the statement recorded under Section 108, stating that it cannot be discarded without evidence proving its incredibility. Additionally, the appellant's failure to request technical testing of the goods or seek provisional release undermined their argument of overvaluation by the department and undervaluation by the assessee.

The judgment confirmed the imposition of duty due to upheld allegations, with no concession or relief granted. However, the Tribunal reduced the redemption fine from &8377; 3 lakhs to &8377; 1,50,000, considering the lack of a market survey to determine the profit possible from the consignments. The penalty of &8377; 75,000 was upheld, emphasizing the importer's obligation to make truthful declarations. Ultimately, the appeal was partly allowed, granting relief only in the reduction of the redemption fine. The judgment underscored the importance of accurate declarations and compliance with customs regulations to avoid penalties and fines.