1988 (5) TMI 132 - AT - Customs

Summary

Issues:
1. Whether Shahji International Pvt. Ltd. can be considered the actual user of the imported goods.
2. Whether the portable generators can be classified as components for emergency lights.
3. Whether the valuation adopted by the revenue authorities was correct.

Analysis:
1. The issue of Shahji International Pvt. Ltd. being the actual user was contested. The appellant argued that Shahji International was the actual user as it owned Asiad Electronics, and the ownership change was duly endorsed in the industrial license. The Tribunal accepted this argument, citing a similar case precedent and held that Shahji International Pvt. Ltd. is the actual user, overturning the adjudicating authority's decision.

2. Regarding the classification of portable generators as components for emergency lights, the appellant contended that the generators were components as per the import license and the AM 82 Policy. However, the Tribunal disagreed, stating that the generators were complete units themselves and not components. They also noted the lack of evidence supporting the appellant as a manufacturer exporter, thus denying the benefit of the AM 82 Policy. The fine in lieu of confiscation was reduced due to the prolonged detention of goods.

3. On the issue of valuation, the appellant argued that the negotiated price should be accepted due to special circumstances like the ban on generator imports. The Tribunal agreed, considering the 10% discount reasonable and accepted the declared value. They referenced a previous case where a significant discount was deemed reasonable, given market conditions. Consequently, the appeal was partially allowed, with the fine reduced to Rs. 1 lakh and the declared value accepted.