2018 (5) TMI 69 - AT - Customs

Valuation of imported goods - old and worn garments from South Korea - Held that - As per the National Import Data Base (NIDB), it appears that the assessee-appellants have shown the valuation on a lower side. So, the lower authorities have rightly estimated the valuation - there is no reason to interfere with the impugned orders when the assessee-appellants have not disputed the valuation - redemption fine also upheld. Penalty u/s 112 of the Customs Act, 1962 - Held that - the Commissioner (Appeals) has made it uniform @ 10%, but in the peculiar facts and circumstances of the case, especially when the National Import Data was closely to the import value, the same appears to be on higher side - penalty reduced to 5%. Appeal allowed in part.

Summary

Issues: Valuation of imported goods, redemption fine, penalty under Section 112 of the Customs Act, 1962

Valuation of Imported Goods:
The case involved the import of old and worn garments from South Korea by the assessee-appellants, who declared a value of 0.90 US $ per kg. However, based on the National Import Data, authorities determined the value to be between 0.93-0.97 US $ per kg, ultimately assessing it at 1 US $ per kg. The lower authorities also imposed a 30% redemption fine before releasing the goods. The Commissioner (Appeals) upheld most of the adjudicating authority's order, reducing the penalty to a flat rate of 10%. The Tribunal found that the goods were imported between March to September 2013, sold in the open market, and the valuation by the assessee-appellants was on the lower side according to the NIDB. As the appellants did not dispute the valuation, the Tribunal upheld the lower authorities' valuation estimation.

Redemption Fine:
Considering the peculiar facts and circumstances of the case, the Tribunal deemed the redemption fine imposed by the lower authorities as reasonable and sustained the order in this regard. The goods were released after paying the redemption fine, and the Tribunal found no reason to interfere with this aspect of the lower authorities' decision.

Penalty under Section 112 of the Customs Act, 1962:
The Commissioner (Appeals) had levied a penalty at a uniform rate of 10%, which the Tribunal considered to be on the higher side given the close proximity of the National Import Data to the import value. In light of the doctrine of equity, justice, and good conscience, the Tribunal modified the penalty by reducing it to 5% in all appeals filed by the assessee-appellants. Consequently, the appellants were granted a 5% relief in penalties across all appeals. The Tribunal partially allowed all the appeals based on the modifications made to the penalty under Section 112 of the Customs Act, 1962.

This detailed analysis of the judgment from the Appellate Tribunal CESTAT KOLKATA provides a comprehensive overview of the issues related to the valuation of imported goods, redemption fine, and penalties under Section 112 of the Customs Act, 1962, as addressed in the case.