1988 (3) TMI 351 - AT - Customs

Summary

Issues:
- Misdeclaration of imported goods
- Confiscation of goods
- Upward revision of assessable value
- Appeal against Collector's decision
- Validity of import licence
- Valuation of imported goods

Analysis:

The case involved the importation of a set of sub-assembly and parts for a flour mill, where customs authorities suspected misdeclaration. The Collector confiscated the goods due to the alleged deliberate attempt to misdeclare the description and value of the imported goods. The appellants were given an option for redemption on payment of a fine and a penalty was imposed. Additionally, the assessable value of the consignment was raised significantly.

Upon appeal to the Central Board of Central Excise & Customs, the Board upheld the Collector's decision, acknowledging the import restrictions at the time but rejecting the appeal. The appellants then filed a Revision Application which was transferred to the Tribunal for disposal as an appeal.

During the proceedings, the appellants argued that the goods imported under different Bills of Entry were wrongly clubbed and cited a Supreme Court decision to support their position. They also contested the valuation of the goods, pointing out discrepancies in weight and the absence of certain components. The customs department, however, argued that a complete flour mill was imported despite the licence being for spares only.

The Tribunal considered the arguments from both sides and referenced the Supreme Court judgment cited by the appellants. It was noted that the licence produced by the appellants did not cover the complete units imported, contrary to the expert's report. The Tribunal rejected the appellants' argument that the licence could be extended to cover the imported goods.

Regarding valuation, the Tribunal acknowledged that the value of the exhaust system was not excluded from the assessable value but found that the appellants did not provide the actual value of this part. Despite some discrepancies, the Tribunal upheld the confiscation of goods and the upward revision of value but reduced the fine and penalty imposed.

In conclusion, the Tribunal affirmed the confiscation and value revision but reduced the fine and penalty, emphasizing the lack of a licence covering the imported goods and the incomplete valuation information provided by the appellants.