2008 (9) TMI 354 - AT - Customs

Valuation of Imported Car Extra fittings and refurbishments held that - Commissioner (Appeals), while giving abatement for the extra fittings and refurbishments, has followed this Bench s ruling which is binding on him - in the absence of any allegation that the appellant had paid more than the Transaction Value and in the absence of the situations enumerated in Rule 4(2) of the Customs Valuation Rules, the invoice value has to be accepted - Therefore, we partially allow the party s appeal with regard to valuation and reject the Revenue s appeal with regard to the valuation on account of abatement for the value of extra fittings and refurbishments

Summary

Issues Involved:
Valuation of imported vehicle, imposition of fine and penalty, 'no sale' condition, abatement for extra fittings and refurbishments.

Valuation of Imported Vehicle:
The party imported a Toyota Land Cruiser Car declared as a 2003 model, but discrepancies led to seizure and re-assessment by the Adjudicating Authority. The value was re-assessed under Customs Valuation Rules, with an option for redemption on payment of a fine. The party contended the acceptance of evidence from an interested party, the model-year correlation, and applicability of accessory valuation rules. The Commissioner (Appeals) upheld the re-assessment based on details from the manufacturer and allowed extra fitting valuation. The Tribunal accepted the invoice value due to lack of evidence for suppression, partially allowing the party's appeal on valuation.

Imposition of Fine and Penalty:
A penalty and fine were imposed alongside the redemption option, leading to the party's appeal citing minor violations, impossibility defense, and post-import conditions. The Commissioner (Appeals) reduced the fine and penalty, considering the 'no sale' condition's constitutional validity. The Tribunal upheld the reduction in fine and penalty, rejecting Revenue's appeal on abatement and 'no sale' condition, partially allowing the party's appeal by accepting the Invoice Value.

'No Sale' Condition:
The 'no sale' condition imposed for two years was contested as unconstitutional by the party, arguing against post-import trading restrictions. The Commissioner (Appeals) lifted the 'no sale' condition, emphasizing the balance between post-import restrictions and trading rights. The Tribunal upheld the decision to scrap the 'no sale' condition, following precedent and constitutional principles, thereby rejecting Revenue's appeal and partially allowing the party's appeal.

Abatement for Extra Fittings and Refurbishments:
Revenue challenged the abatement granted for extra fittings and refurbishments, along with the lifting of the 'no sale' condition. The Tribunal upheld the abatement decision, citing precedent and binding rulings, while also supporting the Commissioner (Appeals)'s action in removing the 'no sale' condition. The final order upheld the abatement and rejected Revenue's appeal, partially allowing the party's appeal by accepting the Invoice Value and upholding the confiscation.