1992 (12) TMI 138 - AT - Customs

Summary

Issues:
1. Determination of correct value for debiting import license.
2. Confiscation of goods and imposition of fine and penalty for unauthorized import.

Analysis:
1. The appeals arose from orders of the Collector of Customs upholding findings of unauthorized import of dry fruits by the appellants. The Department found discrepancies in weight and value of goods declared in Bills of Entry. The Department enhanced the value based on invoices of similar goods imported earlier, accepted under Section 14(1)(a) of the Customs Act, 1962. The Assistant Collector held imports unauthorized and imposed fines. Appeals were filed, arguing for debiting the import license with actual price paid, not enhanced value. The Collector (Appeals) upheld the Assistant Collector's decision, noting the appellants' acceptance of the enhanced value but set aside the penalty due to specific duty rates, not ad valorem.

2. The appellants contended that only the actual price paid should be debited to the import license, not the enhanced value. The Collector (Appeals) based his decision on the appellants' acceptance of the value determined by the Customs House. However, the appellants waived show cause notice during adjudication to prevent pilferage of perishable goods. The Bombay High Court decision highlighted the distinction between assessment value for customs duty and CIF value for debiting import license. The Tribunal emphasized the need for bona fide pricing in debiting the license. The Collector (Appeals) waived penalties due to lack of wilful misdeclaration, attributing no mala fides to the appellants. The decision set aside debiting the import license with the enhanced value but upheld confiscation of goods and fines for excess quantity.

In conclusion, the judgment clarified the correct approach to debiting import licenses and emphasized the importance of bona fide pricing. The decision balanced the unauthorized import with the absence of wilful misdeclaration, resulting in setting aside the penalty but upholding confiscation and fines.