2008 (10) TMI 207 - AT - Customs

Valuation Customs - goods were got assessed from one Shri Harish Badhalia a person from the jewellery trade and also by the jewellery appraiser and as per the assessment the actual value of the goods was much more than declared by the importer. The goods were imported under a invoice issued by the son of importer enhanced valuation upheld

Summary

Issues: Valuation of imported goods, rejection of transaction value, under-valuation of goods, confiscation, redemption fine, personal penalties

In the judgment delivered by the Appellate Tribunal CESTAT, New Delhi, the case involved the valuation of imported goods where the appellant, a jeweler, declared a value of Rs.10,34,489 for gemstones brought from Bangkok. Customs Authorities suspected undervaluation based on an invoice issued by the appellant's son, leading to a reassessment valuing the goods at Rs.23,08,178. The appellant admitted to the actual value. The adjudicating authority confiscated the goods, allowing their release upon payment of redemption fine and imposing personal penalties. The appellant contended that the transaction value was unreasonably rejected without evidence of intent to evade duty.

The revenue contended that reassessment by a person from the jewelry trade and an appraiser confirmed the undervaluation, disputing the facts around the invoice issued by the appellant's son.

The Tribunal found that assessments by the jewelry trade person and appraiser established the actual value exceeded the declared value significantly. The goods were imported under the son's invoice, supporting the suspicion of undervaluation. Consequently, the Tribunal upheld the impugned order, dismissing the appeal. The judgment highlights the importance of accurate valuation in customs matters and the consequences of undervaluation, leading to confiscation and penalties to deter duty evasion.