2002 (7) TMI 832 - AT - Customs

Summary

Issues:
Determining whether the entire consignment of shoes imported is of Chinese origin or if a part of it is of Indonesian origin.

Analysis:
The appeal involved a dispute regarding the origin of a consignment of sport shoes imported by M/s. Rahul Associates. The appellant claimed that they had ordered shoes of Indonesian origin, but upon examination, 936 pairs were found to be of Chinese origin. The Customs Officers confiscated the entire consignment, imposing anti-dumping duty and a penalty. The Commissioner (Appeals) upheld the decision based on circumstantial evidence. The appellant argued that there was no evidence to prove the remaining shoes were of Chinese origin, emphasizing the difference between 'same' and 'similar' packing. They also questioned the applicability of Section 111(m) of the Customs Act and requested re-exporting the goods.

In response, the Departmental Representative argued that the entire consignment was of Chinese origin, citing the packing list and a Telex message indicating an attempt to influence Customs. They contended that misdeclaration was evident and that the appellant did not request re-export at earlier stages. The representative also referenced legal precedents to support their position.

After considering both arguments, the Tribunal found that while 936 pairs were of Chinese origin, the Department failed to prove the entire consignment shared the same origin. The Tribunal noted that the exterior packing being similar does not conclusively establish the origin of all shoes unless proven. The issuance of a Certificate of Country of origin by Dubai Chamber of Commerce was not sufficient evidence. Consequently, the Tribunal upheld the confiscation of 936 pairs, reducing the redemption fine and penalty. Anti-dumping duty was levied only on the 936 pairs of Chinese origin, and the penalty was reduced.

In conclusion, the appeal was partly allowed, with the Tribunal ruling in favor of M/s. Rahul Associates regarding the origin of the imported shoes, limiting the confiscation to 936 pairs of Chinese origin and adjusting the associated penalties accordingly.