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Issues: Alleged under-valuation of imported photocopying machines; Validity of relying on a quotation from a Hong Kong trader as evidence of under-valuation.
In the case before the Appellate Tribunal CEGAT, New Delhi, the appellant had placed an order for 24 photocopying machines with a supplier in the UK, which were supplied from Singapore. The Customs House alleged under-valuation of the machines based on discreet inquiries, leading to a notice proposing loading of value, confiscation, and penalty imposition. The appellant contested the notice, requesting justification and supporting documents for the alleged under-valuation. The Additional Collector relied on a quotation from a Hong Kong trader, dated after the show cause notice, indicating a price for a different model of photocopier that was out of stock. The Tribunal noted that the quotation did not specify the recipient or relevance to the Indian importer, questioning its validity as evidence. The Tribunal found that the authorities erred in relying solely on this quotation to establish under-valuation, especially considering the lack of evidence regarding contemporaneous imports or relevance to the case. The Tribunal concluded that the adjudicating and appellate authorities were unjustified in their reliance on the quotation and set aside the impugned order, allowing the appeal. This judgment primarily dealt with the issue of alleged under-valuation of imported photocopying machines by the appellant. The Customs House claimed under-valuation based on discreet inquiries, leading to a notice proposing punitive actions. The appellant contested the notice, seeking justification and supporting documents for the allegations. The Additional Collector relied on a quotation from a Hong Kong trader, dated after the show cause notice, as evidence of under-valuation. The Tribunal critiqued this reliance, noting the lack of specificity in the quotation regarding the recipient or relevance to the Indian importer. The Tribunal emphasized the absence of evidence on contemporaneous imports or the suitability of the quotation as proof of under-valuation. Consequently, the Tribunal found the authorities' reliance on the quotation unjustified and set aside the impugned order, allowing the appeal. The key issue in this case was the validity of relying on a quotation from a Hong Kong trader as evidence of under-valuation of imported photocopying machines. The Tribunal scrutinized the quotation, which was not addressed to the appellant or shown to be relevant to the Indian importer. The quotation referred to a different model of photocopier that was out of stock, raising doubts about its suitability as evidence. The Tribunal highlighted the absence of evidence on contemporaneous imports or the trader's capacity to supply the specific model in question. Ultimately, the Tribunal concluded that the authorities erred in basing their decision solely on this quotation, emphasizing the lack of concrete evidence supporting the under-valuation allegations. As a result, the Tribunal set aside the impugned order and allowed the appeal, indicating the insufficiency of the quotation as proof of under-valuation.
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