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2017 (6) TMI 841 - AT - CustomsValuation of imported goods - used offset press - enhancement of value of the imported goods in terms of local Chartered Engineer opinion - Held that - local Chartered Engineer was not in possession of any additional information to decide the valuation. Virtually, he has not given any reference to the technical manual or information based on which value of the machines have been reassessed. In fact, the local Chartered Engineer has indicated the year of manufacture as 1984 as against 1975 by the Chartered Engineer at load port. Admittedly, the imported goods are more than 10 years old in terms of Import Trade Control Regulations in EXIM 2002-07 read with para 3.3 of the Handbook of Procedures of Vol-I. The importers have violated the provisions of Foreign Trade (Development and Regulation) Act, 1992. The goods are therefore liable for confiscation under Section 111 (d) of the Customs Act, 1962 - redemption fine reduced to ₹ 60,000/- - penalty u/s 112 (a) reduced to ₹ 30,000/-. Appeal allowed - decided partly in favor of appellant.
Issues:
1. Disregard of overseas Chartered Engineer certificate by customs authorities. 2. Rejection of load port Chartered Engineer certificate and re-assessment of imported goods' value. 3. Confiscation and penalty imposition for violation of ITC regulations. Issue 1: Disregard of overseas Chartered Engineer certificate by customs authorities The case involved the import of a used offset press, with the importer declaring a transaction value of US $12,250. Customs authorities, upon suspicion of undervaluation, had the goods examined by local Chartered Engineers who assessed the value significantly higher. The appellant argued that the overseas Chartered Engineer certificate was valid and should have been accepted. The Tribunal noted that the rejection of the load port Chartered Engineer certificate lacked valid reasons, as there was no evidence to doubt its authenticity. The Tribunal held that the valuation based on the local Chartered Engineer's opinion was not valid, as it lacked sufficient independent reasons for rejecting the load port certificate. Citing precedent, the Tribunal concluded that the declared value supported by the overseas Chartered Engineer certificate should be accepted. Issue 2: Rejection of load port Chartered Engineer certificate and re-assessment of imported goods' value The local Chartered Engineer's assessment of the goods' value was challenged by the appellant, who argued that it was done arbitrarily without inspecting the goods. The Tribunal observed discrepancies in the assessments by different local Chartered Engineers regarding the year of manufacture of the machine. It was noted that the rejection of one expert's opinion solely based on another expert's view was not valid, as per legal precedent. The Tribunal found that the customs authorities had not provided sufficient independent reasons for disregarding the load port Chartered Engineer certificate. Consequently, the reassessment based on the local Chartered Engineer's opinion was deemed invalid, and the declared value supported by the load port certificate was upheld. Issue 3: Confiscation and penalty imposition for violation of ITC regulations The imported goods were found to be more than 10 years old, violating ITC regulations, leading to confiscation under the Customs Act, 1962. The importers were also liable for a penalty under the same Act. Considering the circumstances, the Tribunal reduced the redemption fine and penalty imposed on the importers. The party's appeal was partially allowed, the revenue's appeal was dismissed, and cross objections were disposed of accordingly. In conclusion, the Tribunal's judgment addressed the issues of disregarding the overseas Chartered Engineer certificate, re-assessment of the imported goods' value, and the confiscation and penalty imposition for violating ITC regulations. The decision emphasized the importance of valid reasons for rejecting expert opinions and upheld the declared value supported by the load port Chartered Engineer certificate.
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