1994 (5) TMI 109 - AT - Customs

Summary

Issues: Valuation of imported goods, assessment of depreciation, rejection of refund claim based on valuation and exchange rate, appeal against rejection of refund claim.

In the case before the Appellate Tribunal CEGAT, New Delhi, the appellant, a non-resident Indian, had imported goods declared as personal items but were suspected to be misdeclared. The Customs authorities valued the goods at Rs. 72,950 and confiscated a portion while absolutely confiscating the rest, imposing a penalty of Rs. 20,000. The appellant appealed and later obtained an import license for the goods. However, on re-importation, the Assistant Collector assessed the goods at a highly inflated price without considering the invoices provided by the appellant, leading to a refund claim rejection. The Collector (Appeals) rejected the appeal based on valuation and exchange rate at the time of re-importation. The appellant challenged this decision before the Tribunal.

The learned consultant for the appellant argued that the Customs authorities had accepted the valuation of the goods in November 1978, which was never challenged. He cited a Bombay High Court judgment to support the acceptance of the invoices provided by the appellant for valuation. The consultant also requested a higher depreciation rate of 50% due to the nature of electronic items and storage conditions. The JDR reiterated the lower authorities' findings.

The Tribunal found merit in the appellant's arguments, noting that the Customs authorities had based the valuation on November 1978 and had not provided any evidence for the high valuation. They agreed that the invoices should be accepted for valuation, considering them as the FOB value and allowing additions for sea freight and insurance. Additionally, the Tribunal agreed with the consultant's request for a 50% depreciation on the goods due to the time elapsed and the nature of electronic items. Consequently, the Tribunal allowed the appeal in favor of the appellant, granting the requested relief based on the valuation and depreciation considerations presented during the proceedings.