1991 (5) TMI 180 - AT - Customs

Summary

Issues Involved:
1. Enhancement of the value of imported goods without hearing the appellants.
2. Violation of principles of natural justice.
3. Comparison of imports for valuation purposes.
4. Applicability of Rule 5 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.
5. Determination of assessable value and imposition of penalty.

Summary:

1. Enhancement of the value of imported goods without hearing the appellants:
The appellants imported 4,10,000 pieces of "Y.K.K. polyester zippers type LFC-32, No. 3, size 8" from Singapore. The Addl. Collector enhanced the value of the goods without hearing the appellants, leading them to appeal to this Tribunal. The Tribunal remanded the matter to the Addl. Collector with directions to hear the appellants and pass fresh orders.

2. Violation of principles of natural justice:
The appellants contended that the Addl. Collector relied on records without disclosing them, violating the principles of natural justice. The Tribunal noted that the Collector did not furnish copies of certain invoices to the appellants, which was unjustified.

3. Comparison of imports for valuation purposes:
The Collector enhanced the value based on imports made by M/s. Durga Enterprises, treating two separate imports as one, which the Tribunal found incorrect. The Tribunal emphasized that the imports by M/s. Durga Enterprises and the appellants were not comparable due to differences in quantity and origin.

4. Applicability of Rule 5 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988:
The Tribunal noted that Rule 5(1)(b) requires the transaction value of identical goods to be at the same commercial level and in substantially the same quantity. Since the imports by M/s. Durga Enterprises were from Hong Kong and in a different quantity, Rule 5(1)(b) was not applicable.

5. Determination of assessable value and imposition of penalty:
The Tribunal determined that the assessable value should be fixed at 1159 Japanese Yen per 100 pieces, based on consistent evidence of the price of identical goods. The appellants were directed to pay the difference in duty on the enhanced value and a redemption fine of Rs. 25,000/-. The penalty imposed by the Collector was set aside due to the appellants facing litigation twice and the violation of natural justice principles.

Conclusion:
The appeal was disposed of with directions to assess the goods at 1159 Japanese Yen and allow the appellants to redeem the goods on payment of a redemption fine of Rs. 25,000/-. The penalty imposed by the Collector was set aside.