1995 (1) TMI 150 - AT - Customs

Summary

Issues Involved:
1. Import Trade Control (ITC) provisions
2. Customs valuation

Issue-wise Detailed Analysis:

1. Import Trade Control (ITC) Provisions:

The appellants imported synthetic pyrethrum from Japan without a valid import license and without registration under the Insecticides Act, 1968. The Collector of Customs found the import unauthorized and imposed a redemption fine of Rs. 6 lakhs on each consignment. The appellants contended that the goods were covered under the Open General License (OGL), while the Customs Authorities argued that a regular license was required. The Tribunal examined the ITC Schedule and concluded that the specific entry for synthetic pyrethrum should prevail, thus covering the goods under OGL.

However, the Tribunal noted that M/s. Lark Trading Co. were not the actual users and had opened the Letter of Credit (L/C) themselves, violating para 119(1) of the Hand Book of Import & Export Procedures 1985-88. The Tribunal found that the letter of authority issued by M/s. Trans was invalid as M/s. Trans were not registered to manufacture chemically treated mats at the time of import. Consequently, the import was deemed unauthorized.

2. Customs Valuation:

The Collector of Customs enhanced the value of the goods from US $ 60 per kg to US $ 140 per kg. The appellants argued that the goods were of a different grade and provided invoices to support their declared value. The Tribunal examined the invoices and found that the goods imported by the appellants were not comparable to those imported by other parties at higher prices. The Tribunal relied on the contemporaneous imports and upheld the enhanced valuation of US $ 140 per kg as determined by the Collector.

Conclusion:

The Tribunal confirmed the findings of the adjudicating authority regarding the unauthorized import and the enhanced valuation. However, considering the history of the case and the prolonged detention of the goods, the Tribunal reduced the redemption fine from Rs. 12 lakhs to Rs. 2 lakhs. The impugned order was otherwise confirmed.