1996 (9) TMI 393 - AT - Customs

Appeal - Evidence - Additional Evidence - Confiscation - Evidentiary value - Import - Valuation - Additional Duty - Integrated Bracelet Case

Issues Involved:
1. Mis-declaration and under-valuation of imported goods.
2. Confiscation under Section 111(f) of the Customs Act.
3. Confiscation under Section 111(m) of the Customs Act.
4. Confiscation under Section 111(d) of the Customs Act.
5. Valuation of imported goods.
6. Eligibility for benefits under various Customs Notifications.
7. Admissibility of additional evidence and documents.

Detailed Analysis:

1. Mis-declaration and Under-valuation of Imported Goods:
The Directorate of Revenue Intelligence (DRI) intercepted consignments declared as components of alarm clocks, which were found to be DC Micro motors. Further examination revealed various other mis-declared items such as button cells, digital clocks, and cardiac patches. The goods were seized for mis-declaration and under-valuation, and show cause notices were issued proposing confiscation and penalties.

2. Confiscation under Section 111(f) of the Customs Act:
The Collector confiscated certain items under Section 111(f) on the grounds that they were not declared in the manifest. However, the Tribunal found no evidence that the appellants instructed the Shipping Corporation of India regarding the declarations in the import manifest. The Tribunal concluded that the primary responsibility for declaration lies with the owners or agents of the vessel or aircraft, and therefore, confiscation under Section 111(f) was not justified.

3. Confiscation under Section 111(m) of the Customs Act:
The Tribunal held that Section 111(m) would not be attracted if no Bill of Entry had been filed. The term "entry" in relation to goods means an entry made in a Bill of Entry. Therefore, if a Bill of Entry has not been filed, the question of goods not corresponding with the goods entered in the Bill of Entry cannot arise.

4. Confiscation under Section 111(d) of the Customs Act:
The Tribunal upheld the Collector's decision that goods imported without the required import license are liable for confiscation under Section 111(d). This includes cases where a Bill of Entry has not been filed but the goods are prohibited for import, and no import license has been produced.

5. Valuation of Imported Goods:
The Tribunal examined various quotations and documents to determine the correct valuation of the imported goods. It was found that many quotations relied upon by the department were not reliable or contemporaneous. The Tribunal rejected the enhancement of values in several cases due to insufficient evidence.

- DC Micromotors: The Tribunal found no sufficient evidence to enhance the value from HK $0.75 per piece to US $0.85 per piece.
- Calculators: The Tribunal rejected the quotation of M/s Oam International as unreliable and did not agree with the Collector's finding to enhance the value.
- Digital Clocks: The Tribunal found no sufficient evidence to enhance the value from HK $3.71 per set to US $1.30 per set.
- Cardiac Patches: The Tribunal upheld the Collector's valuation based on the description given in the wrapper.
- Balloon Catheters: The Tribunal did not find sufficient evidence to support the value determined by the department under Rule 7 of the Customs Valuation Rules.
- Button Cells: The Tribunal rejected the enhancement of value based on the quotation of M/s Oam International.
- Watch Modules: The Tribunal found no case of undervaluation and held that the declared value was acceptable.
- Alloy Metal Bezel: The Tribunal did not find sufficient justification for enhancing the value.
- Leather Strap: The Tribunal could not uphold the valuation as there was no quotation on record.
- Integrated Bracelet Cases: The Tribunal did not find sufficient evidence to support the charge of undervaluation.

6. Eligibility for Benefits under Various Customs Notifications:
The Tribunal examined the eligibility for benefits under various customs notifications and found the following:

- DC Micromotors: The appellants were considered actual users and eligible for the benefit of Public Notice 32/92-97.
- Watch Modules: The appellants were eligible for the benefit of Public Notice 32/92-97.
- Alloy Metal Bezel: The appellants were entitled to the benefit of Notification No. 41/85-Cus.
- Integrated Bracelet Cases: The appellants were eligible for the benefits of Notification Nos. 41/85 and 126/92.

7. Admissibility of Additional Evidence and Documents:
The Tribunal allowed the additional evidence to be taken on record, subject to the evaluation of their evidentiary value during the course of the hearing. The Tribunal noted that the primary evidence on which the Hong Kong Customs reports were based had not been disclosed to the appellants, which denied them the opportunity to challenge the correctness of the reports. The Tribunal decided to consider the valuation based on other evidence available on record.

Conclusion:
The Tribunal carefully considered the submissions and evidence from both sides. It upheld some of the Collector's findings and rejected others based on the reliability and sufficiency of the evidence. The appeals were disposed of in terms of the detailed findings on each issue.

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