2022 (2) TMI 368 - AT - Customs

Valuation of imported goods - Old and used Digital Multifunctional Devices with standard Acc. And attachments - restricted goods or not - enhancement of declared value - demand based on NIDB data - Confiscation - Redemption Fine - Penalty - HELD THAT - The admitted fact is that the appellant has accepted the enhanced value at the time of clearance of goods, the said issue has been examined by this Tribunal in the case of COMMISSIONER OF CUSTOMS DELHI VERSUS M/S HANUMAN PRASAD SONS 2020 (12) TMI 1092 - CESTAT NEW DELHI where it was held that the importers had in writing accepted the transaction value and it is perhaps for this reason that they did not require any show cause notice to be issued to them or a personal hearing to be granted to them. The respondent is, therefore, not justified in asserting that the transaction value has been determined on the basis NIDB data. It was their acceptance of the value that formed the basis for determination of the value. Redemption Fine - Penalty - HELD THAT - The redemption fine imposed on the appellant is on higher side - Considering the fact that the value of imported goods declared by the appellant has already been enhanced on which the appellant has to pay more duty, therefore, the redemption fine reduced to 20% of the enhanced value and penalty in all the cases reduced to ₹ 10,000/- each. Appeal allowed in part.

Summary

Issues:
Enhancement of declared value of imported goods, imposition of redemption fine and penalty.

Analysis:

Enhancement of Declared Value:
The appellant imported old and used digital multifunctional devices without a valid authorization, leading to doubts about the declared value and misdeclaration of goods. The appellant accepted the enhanced value at the time of clearance to avoid detention and demurrage charges. The appellant contested the enhanced value later, citing arbitrariness. The appellant relied on legal precedents to support their argument. The Department opposed, emphasizing the appellant's acceptance of the enhanced value during clearance. The Tribunal referred to the case of Hanuman Prasad & Sons, stating that acceptance of enhanced value without protest at the time of clearance prevents later challenges. The Tribunal upheld the enhanced value, considering the appellant's acceptance during clearance.

Imposition of Redemption Fine and Penalty:
The Tribunal found the redemption fine imposed on the appellant to be excessive. Considering the enhanced value already accepted by the appellant, the Tribunal reduced the redemption fine to 20% of the enhanced value. Additionally, the penalty imposed on the appellant was reduced to ?10,000 each in all cases. The Tribunal disposed of the appeals based on these terms.

In conclusion, the Tribunal upheld the enhanced declared value of imported goods due to the appellant's acceptance at the time of clearance. The redemption fine was reduced to 20% of the enhanced value, and penalties were reduced to ?10,000 each. The judgment was pronounced on 31.01.2022 by the Appellate Tribunal CESTAT CHANDIGARH, with detailed analysis provided for each issue involved.