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Issues Involved:
1. Whether the imported goods were components or complete expansion valves and dial thermometers and whether these goods were covered under OGL or required a specific license. 2. Whether the goods were under-invoiced. Issue-wise Detailed Analysis: Issue 1: Nature of Imported Goods and Licensing Requirements The primary contention was whether the imported goods were merely components or complete thermostatic expansion valves and dial thermometers. The appellants argued that they imported only components in S.K.D. condition, which should be eligible for clearance under OGL Appendix VI List 8 Pt. I, S. No. 638/90-93. However, the Customs Authorities contended that the goods were complete items brought in S.K.D. condition, falling under S. No. 564 and S. No. 702 of Appendix III Pt. A of the 1990-93 Import Policy, requiring a specific license. The Tribunal noted that the goods were examined in the docks and found to be complete thermostatic expansion valves and dial thermometers, albeit in S.K.D. condition. The adjudicating authority also confirmed this upon inspection. The marking on the boxes, such as "Tedington KDA Dial thermometer (A) Distance Term - Thermometer," further supported this conclusion. Additionally, the Director of the appellant firm admitted in his statement that they only assembled, tested, and adjusted the imported items for local sales, indicating that the goods were complete. The Tribunal rejected the appellants' argument that importing all components at once should be permissible under OGL, stating that such an interpretation would undermine the Import Policy's restrictions. The Tribunal upheld the adjudicating authority's finding that the goods were complete and required a specific license, thus confirming the confiscation order. Issue 2: Valuation and Under-Invoicing Allegations The second issue concerned the alleged under-invoicing of the imported goods. The Customs Authorities argued that the goods were under-invoiced based on evidence from an investigation report, invoices, and price lists from M/s. Teddington Controls Ltd. The appellants contended that the declared value was correct and that the documents relied upon by the Customs were not admissible as evidence under Section 139 of the Customs Act, 1962. The Tribunal examined the evidence, including the investigation report, export sales invoices, and price lists. It was found that the goods were supplied by M/s. Teddington to M/s. Elnode and that the invoices were marked as export sales, indicating the prices were for international sales. The Tribunal noted that the appellants failed to provide the manufacturer's price list or invoice to support their declared value. The Tribunal held that the investigation report and export sales invoices were relevant and admissible as evidence, as they were supported by the price lists and other documents. The Tribunal concluded that the lower authorities were justified in determining the value based on the available evidence and upheld the findings of under-invoicing. Conclusion: The Tribunal upheld the adjudicating authority's order, confirming the confiscation of the goods and the imposition of penalties. The appeal was rejected, affirming that the imported goods were complete items requiring a specific license and that the declared value was under-invoiced.
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