2017 (9) TMI 1451 - AT - Customs

100% EOU - Misdeclaration of description of goods - enhancement of value - Held that - the goods have been imported accompanied by the Malaysian supplier s invoice in which the value of the goods found declared differently from what has been claimed at the point of export. Once the goods are considered as an independent import not connected with the claim of export from India, the findings of the adjudicating authority merits approval - confiscation upheld - appeal dismissed - decided against appellant.

Summary

Issues:
Misdeclaration of goods description and quantity, Misdeclaration of Country of Origin, Non-production of Pre-shipment Inspection Certificate, Suppression of related party transaction.

Analysis:

1. Misdeclaration of goods description and quantity: The case involved discrepancies in the description and quantity of imported goods. While the first item was found as declared, the second item, Copper Scrap, was noted to be of 'candy' grade and the quantity was found to be 3.800 MTs instead of the declared 3.364 MTs. The Customs initiated proceedings against the importer for misdeclaration in this regard.

2. Misdeclaration of Country of Origin: The Customs alleged misdeclaration of the Country of Origin among other violations. The importer was accused of not accurately declaring the origin of the imported goods, which was a significant issue in the case.

3. Non-production of Pre-shipment Inspection Certificate: Another allegation against the importer was the failure to produce the mandatory Pre-shipment Inspection Certificate. This non-compliance with the required documentation was considered by the authorities in their decision-making process.

4. Suppression of related party transaction: The Customs also accused the importer of suppressing the fact that the transaction was a related party transaction. This allegation was part of the proceedings initiated against the importer.

The impugned Order-in-Original upheld the misdeclaration in goods description, failure to produce the mandatory certificate, and reassessed the value of the goods based on prevailing prices. The Commissioner ordered payment of Customs duty at the enhanced value, imposed fines and penalties, and ordered confiscation of the goods under relevant sections of the Customs Act, 1962.

During the appeal, the advocate for the appellant argued that the imported goods were the same as those exported by a sister concern of the importer, supported by the intact one-time seal of Chennai Customs. However, the Customs authorities found discrepancies in the description and quantity of the imported goods compared to the claimed export. The Malaysian supplier's invoice also showed differences in the declared value. Consequently, the Tribunal upheld the impugned order, dismissing the appeal and approving the findings of the adjudicating authority regarding confiscation and redetermination of value.

In conclusion, the Tribunal found that despite the claim of the goods being the same as those exported, the discrepancies in description, quantity, and value led to the approval of the impugned order for confiscation and duty payment. The appeal was dismissed, affirming the decision of the Commissioner.