2018 (10) TMI 1158 - AT - Customs

Valuation of imported goods - enhancement of value based on NIDB data - mis-declaration of imported goods - It appeared to revenue that description and quantity of Iron and Copper scrap was different than declared and they were found to be in mixed form. Valuation - Held that - In the case of Aarti Impex 2013 (9) TMI 29 - CESTAT NEW DELHI no issue related to reliance to be placed on NIDB data for enhancement of value under the provisions of Section 14 of Customs Act 1962 was made - Further this Tribunal in the case of M/s Shiva Alloys Pvt. Ltd. 2005 (12) TMI 322 - CESTAT NEW DELHI has held that LME prices are at best only indicative and are not final and conclusive to enable relying upon the same for enhancement of value. Appellant s appeal is allowed in so far as valuation aspect is concern - the value declared by the appellant through the said Bill of Entry No.5634075 dated 28.05.2014 is restored. In so far as declaration about goods was concerned the appellant declared that they imported 1.68 MTs of Copper Scrap whereas it was found that 2.1304 MTs Copper Scrap was imported and Copper and Iron Scrap were mixed as found during examination - this impugned order is not interfered with in so far as the same is concerned about mis-declaration confiscation imposition of redemption fine and penalty. The appeal is allowed on the issue of valuation and rest of the appeal is rejected.

Summary

Issues: Mis-declaration of goods, valuation of imported goods, reliance on NIDB data for enhancement of value

Mis-declaration of goods:
The appeal was directed against an Order-in-Appeal passed by the Commissioner of Central Excise & Customs, Meerut Zone. The appellant had imported Iron scrap, Aluminum scrap, and Copper scrap, but discrepancies were found during examination. The quantity and description of the goods differed from the declaration in the Bill of Entry. The Original authority confiscated the goods under the Customs Act, 1962, for mis-declaration and offered the option to pay a fine for redemption. The appellant contended that the mixing of Iron and Copper scraps might have occurred during transport. The Commissioner (Appeals) upheld the Order-in-Original, relying on a Tribunal decision regarding the enhancement of value using NIDB price data.

Valuation of imported goods:
The appellant argued that the London Metal Exchange Bulletin prices were not suitable for valuation, as they only indicated price variation. They challenged the reliance on the Tribunal's decision in Aarti Impex's case, stating that no Larger Bench had been constituted for the decision. The Tribunal noted that the Aarti Impex case involved a difference of opinion between members and a reference to a Third Member. It clarified that the issue of relying on NIDB data for value enhancement was not addressed in that case. Referring to a previous case, the Tribunal held that LME prices were not conclusive for valuation. Consequently, the Tribunal allowed the appeal on the valuation issue and restored the value declared in the Bill of Entry.

Reliance on NIDB data for enhancement of value:
The Tribunal emphasized that the Aarti Impex case did not address the reliance on NIDB data for value enhancement. It highlighted a previous decision that LME prices were only indicative and not final for valuation purposes. The Tribunal allowed the appeal on the valuation aspect, restoring the declared value in the Bill of Entry. However, it upheld the decision on mis-declaration, confiscation, redemption fine, and penalty. The appeal was allowed on the valuation issue, while the rest of the appeal was rejected.