2018 (4) TMI 854 - AT - Customs

Valuation - enhancement of the value - demand based on certificate issued by the Chartered Engineer (CE) - Held that - circular No. 25/2015 clarifies that all the imports second hand machinery / used capital goods shall ordinarily be accompanied by an inspection / appraisement report issued by an overseas CE or Equivalent, prepared upon examination of the goods at the place of sale - Undisputedly this circular has not been followed in the cases in hand and that is no load port Chartered Engineer s Certificate s inspection / appraisement report. Which is in contravention of the provisions of customs and applied by authorities; transaction value i.e. declared value was rejected for non-production of the certificate from load port - the action of rejection of the declared value is correct and that the valuation arrived at by the lower authorities and the findings recorded by the First Appellate Authority on these points are correct and legal and does not require any interference. Undisputedly, products which were imported were without any, prior licence or permission from Ministry of Environment and Forests, and imported in violation of para 2.3 of the Foreign Trade Policy 2015-2020 - the goods imported have to be held as of prohibited nature and correctly confiscated by the lower authorities. Appeal dismissed.

Summary

Issues:
Appeal against Order-in-Appeal regarding import of used MFD Copiers without proper licenses and valuation disputes.

Analysis:
The appeals were directed against a common Order-in-Appeal dated 07.04.2017. The appellant had imported used MFD Copiers from Sharjah, UAE, and USA, which were classified as hazardous waste under the Foreign Trade Policy. The goods arrived without load port Chartered Engineer Certificate and proper license, leading to confiscation, fine, and penalty imposition. The value declared in the Bill of Entry was enhanced by the Adjudicating Authority, and duty liability was calculated. The appeals were rejected by the First Appellate Authority upholding the Order-in-Original.

The main contention raised by the appellant was the inconsistency in valuation by the Chartered Engineer, arguing for a reduction in redemption fine and penalty. The Departmental Representative supported the lower authorities' findings. The challenge primarily focused on the valuation enhancement based on the Chartered Engineer's certificate. The circular No. 25/2015 regarding inspection reports by overseas Chartered Engineers was not followed, leading to rejection of the declared value. The First Appellate Authority's findings on valuation were deemed correct and legally sound, not warranting interference.

The rejection of the declared value was justified due to non-compliance with load port inspection requirements. The Chartered Engineer's valuation was considered appropriate, and the appellant's arguments against it were dismissed. The goods were held as prohibited due to import violations, justifying confiscation. The Impugned Order was upheld as correct and legal, leading to the rejection of the appeals. The judgment was pronounced at the conclusion of the hearing.