1989 (8) TMI 240 - AT - Customs

Summary

Issues: Condonation of Delay in Filing Appeal, Valuation of Imported Second-Hand Machine

Condonation of Delay in Filing Appeal:
The judgment addresses the issue of condonation of delay in filing the appeal due to a petition filed before the Hon'ble High Court of Calcutta against the impugned order. The High Court rejected the petition but directed the condonation of delay for filing the condonation application. The delay was condoned based on sufficient cause, allowing the appeal to proceed for hearing on merits.

Valuation of Imported Second-Hand Machine:
The case involves a dispute over the valuation of a second-hand machine imported by the appellants. Initially, the Collector of Customs determined the value higher than declared in the Bill of Entry based on guidelines for old imported machines. The appellants challenged this before the Tribunal, which remanded the matter for re-adjudication. Despite providing evidence and contentions, the value was confirmed in a subsequent order, leading to the appeal. The appellants argued that the valuation was incorrect, emphasizing the certificate of a Chartered Engineer supporting the declared value without spares. The Department, however, justified the valuation based on a Board's Circular and reconditioning charges.

Analysis:
The judgment delves into the principles of under-invoicing charges, emphasizing the Department's duty to investigate and provide evidence when challenging the declared price. It highlights that the burden of proving mis-declaration lies with the Department, requiring concrete facts discrediting the declared price, not mere suspicion. In this case, the Department failed to prove contemporaneous imports of similar goods, leading to the acceptance of the Chartered Engineer's certificate as an authenticated document. The judgment criticizes the Department for not justifying the rejection of the certificate and for incorrectly applying guidelines without valid reasons. Consequently, the Tribunal set aside the impugned order, ruling in favor of the appellants based on the Chartered Engineer's valuation without spares.

In conclusion, the judgment upholds the importance of proper evidence in challenging declared prices, emphasizing the need for factual substantiation by the Department. It showcases the significance of authenticated documents like the Chartered Engineer's certificate in determining the value of imported goods, ultimately leading to the appeal's success for the appellants.