1994 (9) TMI 152 - AT - Customs

Summary

Issues Involved:
1. Valuation of Imported Goods
2. ITC Policy Violation
3. Imposition of Penalties

Issue-wise Detailed Analysis:

1. Valuation of Imported Goods:
The primary issue was the valuation of 30,000 pieces of IC LA 4440 imported by the appellant. The declared value was S$ 0.072 per piece, but the revenue authorities determined the value at S$ 1.07 per piece based on quotations from M/s. Shing Components (S) Pvt. Ltd., Singapore, and M/s. Sanyo Shin-Nichi Electronic Devices, Hong Kong. The appellant contended that the Bombay Customs had accepted the value of identical goods at US$ 0.05 CIF in earlier bills of entry. The Tribunal noted discrepancies in the quotations provided by the revenue, which were unsigned and varied even on the same date. The Tribunal emphasized the importance of Section 14(1) of the Customs Act, 1962, which mandates that the value should reflect the price at which such goods are ordinarily sold in international trade. Given the contemporaneous imports accepted by Bombay Customs, the Tribunal determined that the value should be Rs. 1.86 per piece, not based on the disputed quotations.

2. ITC Policy Violation:
The adjudicating authority held that the imported goods were consumer goods and the import licenses were not valid, thus constituting an ITC violation. The appellant argued that the goods were covered under the REP license and, alternatively, under OGL. The Tribunal referred to the definition of "consumer goods" as per Public Notice No. 22 (N-3)-ITC(PN)/92-97, which included components of consumer durables. The Tribunal concluded that the importation was unauthorized as the goods did not fall under the valid license or OGL.

3. Imposition of Penalties:
The adjudicating authority imposed penalties on M/s. Polyvinyl Industrial Corporation, Shri N.K. Aggarwal, and Shri M. Walia, citing serious acts of forgery and undervaluation. The Tribunal noted that penalties on both the proprietor and the firm were redundant as they constituted a single entity. Consequently, the penalty on Polyvinyl Industrial Corporation was quashed, and the penalty on Shri N.K. Aggarwal was reduced from Rs. 2 lakhs to Rs. 40,000. Similarly, the penalty on Shri M. Walia was reduced from Rs. 2 lakhs to Rs. 40,000, given his lesser role. The penalties of Rs. 1,000 each under Section 117 of the Customs Act, 1962, were upheld.

Conclusion:
The Tribunal partly allowed the appeal, modifying the valuation of the goods to Rs. 1.86 per piece, reducing the redemption fine to Rs. 50,000, and adjusting the penalties accordingly. The importation was deemed unauthorized, but the penalties were tempered considering the prolonged custody of the goods and the specific roles of the individuals involved.