2009 (3) TMI 105 - AT - Customs

Valuation import of second hand goods - we agree with the decision of the Commissioner (Appeals) in not relying on the values in the Chartered Engineer s certificate for assessment purposes as the same are not specific in respect of each variety of the monitor, CPU and keyboard with regard to the relevant details like brand, year of manufacture and model. We, therefore, do not find any reason to interfere with the order of the Commissioner (Appeals) and accordingly reject both the appeals by the Department.

Summary

Issues:
1. Assessment of imported old and used monitors, CPUs, and keyboards.
2. Validity of the Chartered Engineer's certificate for valuation.
3. Confiscation of goods for violation of licensing conditions.
4. Imposition of redemption fine and penalty.

Analysis:
1. The case involved the assessment of imported old and used monitors, CPUs, and keyboards by the Department. The respondents declared average values for each item, while the Chartered Engineer recommended different values based on an average basis. The original authority adopted the enhanced values recommended by the Chartered Engineer for assessment, leading to the confirmation of duty demand and confiscation of goods for lack of a valid import license.

2. The Commissioner (Appeals) reviewed the case and noted that the monitors, CPUs, and keyboards were of various brands, types, and sizes. He found the method used by the Chartered Engineer to arrive at an average value unreliable. The Commissioner accepted the transaction value declared by the respondents, reducing the redemption fine and penalty due to the acceptance of the lower value.

3. The Tribunal, after hearing the arguments and examining the records, agreed with the Commissioner (Appeals) regarding the unreliability of the values in the Chartered Engineer's certificate for assessment purposes. The Tribunal highlighted that the values were not specific to each variety of the imported items concerning brand, year of manufacture, and model. Consequently, the Tribunal upheld the decision of the Commissioner (Appeals) and rejected both appeals by the Department.

4. In conclusion, the Tribunal's judgment focused on the importance of specific valuation details for imported goods, emphasizing the need for accuracy in assessment to avoid discrepancies in duty calculations. The case highlighted the significance of reliable valuation methods and specific item details in determining the duty payable on imported goods, ultimately leading to the rejection of the Department's appeals.