2004 (2) TMI 190 - AT - Customs

Summary

Issues:
1. Valuation of imported goods under Rule 5 of Valuation Rules.
2. Misdeclaration of value in the invoice for Customs purpose.
3. Contemporaneous price of goods.
4. Acceptance of replacement items and their valuation.
5. Application of Customs Valuation Rules 1998.
6. Comparison of prices for identical goods at the same commercial level and quantity.

Analysis:
The case involved an appeal by the Revenue regarding the valuation of imported 'pickers' declared at 1.48 Swiss Francs per piece. The issue arose when 1118 pickers out of 1800 were returned due to different sizes, and replacements were sent by the Swiss manufacturers at the same price. The Revenue contended intentional misdeclaration of value and the need to consider contemporaneous prices prevailing in January 1999. The Commissioner (Appeals) ruled in favor of the importers, stating that the replacement goods were not in substantially similar quantity as the original import by another party, M/s. Bharat Vijay Mills.

The Tribunal analyzed the case under Rule 5 of the Valuation Rules, emphasizing the importance of comparing prices for identical goods at the same commercial level and substantially the same quantity. It was noted that the import by M/s. Bharat Vijay Mills of 30 'pickers' could not be considered at the same level as the replacements sent for the 1118 pieces. The Tribunal highlighted the necessity to consider quantity discounts and adjustments for commercial level factors, which were not provided by the Revenue. Consequently, the Tribunal dismissed the Revenue's appeal, stating that the grounds presented were insufficient to raise the value of the current imports.

In conclusion, the Tribunal's decision was based on the application of the Customs Valuation Rules 1998 and the requirement to compare prices for identical goods at the same commercial level and substantially the same quantity. The Tribunal found the Revenue's appeal lacking valid grounds and therefore dismissed it.