2001 (7) TMI 189 - AT - Customs

Summary

Issues Involved:
1. Misdeclaration of goods.
2. Valuation of goods.
3. Confiscation and penalties.

Summary:

1. Misdeclaration of Goods:
The primary issue was whether the goods imported by M/s. Ankur Metal Bhandar and M/s. Venus Metal Bhandar were misdeclared. The Tribunal noted that M/s. Ankur Metal Bhandar had declared the goods as "Aluminium Scrap-THROB" based on the invoice and ISRI code, which defines "THROB" as aluminium scrap in the form of ingots, plates, or slabs. The Tribunal extended the benefit of doubt to the importers, stating that there was no misdeclaration for Bills of Entry No. 304975 and 304987. However, for M/s. Venus Metal Bhandar, the Tribunal upheld the finding of misdeclaration as copper scrap was found in addition to aluminium scrap, and the explanation provided by the foreign supplier was not convincing.

2. Valuation of Goods:
The valuation of the goods was enhanced based on LME prices. The Tribunal referred to the decision in Ruchi Associates v. Collector of Customs, 1992 (59) E.L.T. 155 (T), confirmed by the Supreme Court, which held that LME prices alone cannot form the basis for determining assessable value without corroborative evidence. The Tribunal emphasized that the onus of proving that the transaction value does not represent the value for assessment lies with the Department. The Tribunal accepted the transaction value for aluminium scrap imported by both M/s. Ankur Metal Bhandar and M/s. Venus Metal Bhandar, except for the copper scrap, where the Department's value was upheld.

3. Confiscation and Penalties:
The Tribunal held that the goods imported by M/s. Ankur Metal Bhandar were not liable for confiscation, and no penalties were imposable on Ms. Manju Khandelwal and Shri Mukesh Khandelwal. Similarly, no evidence was found against Shri Pawan Goel, Anil Goel, and Shri Gautam Chatterjee, leading to the setting aside of penalties against them. For M/s. Venus Metal Bhandar, the Tribunal found the redemption fine and penalty to be excessive and reduced them to Rs. 70,000/- and Rs. 30,000/-, respectively.

Conclusion:
The appeals were disposed of with the Tribunal providing relief to M/s. Ankur Metal Bhandar and reducing the penalties for M/s. Venus Metal Bhandar. The Tribunal emphasized the importance of transaction value and the burden of proof on the Department in cases of valuation disputes.