2018 (6) TMI 531 - AT - Customs

Misdeclaration of imported goods - semi-finished paragon wax with 3-5% oil content - enhancement of assessable value - the allegations of misdeclaration of the goods already stand upheld by the Tribunal in the earlier order, and the matter was remanded for ascertaining the correct assessable value - Held that - It is seen that during the de novo proceedings also, the adjudicating authority has mainly relied upon the NIDB data, by rejecting the evidences produced by the importer to show that even fully refined paraffin wax was being imported at USD 700 to 775 PMT - Apart from the NIDB data, there is no other evidences on record to show that the appellant had paid more consideration for the said goods to the supplier of the same, there are no justifiable reason to enhance the assessable value - Inasmuch as, there was misdeclaration on the part of the assessee, the confiscation of the goods is warranted and penalty is required to be imposed on the importer - however, the quantum of redemption fine and penalty on Shri M. Sahul Hameed reduced. Penalty on Shri R.K. Aggarwal - Held that - there are no reasons stand spelt out in the impugned order for imposing penalty upon him or his role, nowhere stands discussed by the adjudicating authority - penalty set aside. Appeal allowed in part.

Summary

Issues: Misdeclaration of goods and value, assessment of correct assessable value, imposition of penalties

Misdeclaration of Goods and Value:
The case involved an importer who declared 'semi-finished paragon wax with 3-5% oil content' but upon testing, it was found to be fully refined paraffin wax with 0.7% oil content. The Customs authorities issued a show-cause notice for misdeclaration of description and value. The Tribunal upheld the misdeclaration finding based on the Chemical Examiner's report, classifying the goods under a different category than declared. The value was enhanced from US $ 700 to US $ 1400 per MT based on NIDB data, leading to confiscation of goods and imposition of penalties.

Assessment of Correct Assessable Value:
During de novo proceedings, the adjudicating authority relied on NIDB data to determine the value, rejecting evidence of imports at lower prices presented by the importer. The Tribunal found no justifiable reason to enhance the assessable value as there was no other evidence to support a higher price paid by the importer. The value determination was set aside for fresh assessment, limiting the scope to the show-cause notice, and directing re-quantification of duty and redemption fine in accordance with law.

Imposition of Penalties:
The Tribunal upheld the misdeclaration of goods, warranting confiscation and penalties. While the misdeclaration did not result in short levy, the redemption fine was reduced to &8377; 35,000 and the penalty on one individual was reduced to &8377; 15,000. The penalty on another individual was set aside due to lack of justification in the order for imposing it. The misdeclaration was considered settled, and the penalties were adjusted accordingly, leading to the disposal of the appeals.

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