1987 (2) TMI 212 - AT - Customs

Summary

Issues:
- Appeal against order in adjudication of Additional Collector of Customs, Bombay
- Determination of assessable value, confiscation, fine for redemption, and penalty
- Appeal by M/s Basant Industries and Revenue for enhancement of penalty
- Violation of principles of natural justice in adjudication process
- Admission of additional evidence
- Divisibility of contract for delivery in instalments
- Determination of assessable value for each instalment
- Misdeclaration allegations and evidence in separate adjudications
- Application of Valuation Rules and Customs Act provisions
- Departure from previous assessment without valid reasons
- Penalties and confiscation as separate aspects of adjudication
- Consideration of evidence and remand for denovo adjudication

Analysis:

The judgment involves two appeals filed against the order in adjudication of the Additional Collector of Customs, Bombay. M/s Basant Industries appealed against the determination of assessable value, confiscation, fine for redemption, and penalty, while the Revenue appealed for the enhancement of the penalty. The facts of the case were similar to a previous appeal, and the issues revolved around misdeclaration allegations and evidence, violation of natural justice principles, and the application of Valuation Rules and Customs Act provisions.

The appellant sought to admit additional evidence, but only the Bill of Entry was admitted, not the invoice. The tribunal analyzed the contract for delivery in instalments, stating that each instalment is treated as a separate contract for determining assessable value. The assessable value may vary for each instalment, and misdeclaration allegations were compared between separate adjudications.

The judgment discussed the application of Valuation Rules and Customs Act provisions, emphasizing the need for valid reasons to depart from previous assessments. It highlighted that penalties and confiscation are separate aspects of adjudication, and a finding contrary to a previous assessment requires justification. The tribunal also addressed the violation of natural justice principles and the lack of evidence supporting certain observations in the adjudication order.

Ultimately, the tribunal confirmed the assessable value as per the earlier import, setting aside the order for confiscation and penalty. The appeal of M/s Basant Industries was allowed to that extent, while the Revenue's appeal was dismissed. The judgment provided a detailed analysis of the issues involved and the reasoning behind the decision, ensuring a fair and just adjudication process.