1998 (12) TMI 254 - AT - Customs

Summary

Issues Involved:
1. Whether the transaction value as represented in the Invoice and Bill of Entries of these consignments need to be lawfully rejected under the Customs Act?
2. Whether the contemporaneous imports relied upon by the Revenue are applicable to the facts of these cases, particularly, of being comparable goods or not?
3. Whether the contemporary import of VICTORIA MARINE submitted by the importers is to be considered as good evidence in law?

Summary of Judgment:

Issue 1: Rejection of Transaction Value
The Tribunal found that the department did not provide any evidence to prove that the invoice value declared by the importers was fraudulent. The onus to prove fraud rests on the department, and in the absence of such evidence, the transaction value declared in the Invoice and Bill of Entry cannot be rejected.

Issue 2: Applicability of Contemporaneous Imports by Revenue
The Tribunal noted that the chemical composition of Vitamin Mixes imported by the appellants was significantly different from those relied upon by the department. The concentration of major vitamins in the imports by the appellants was much higher than in the imports from Pingtai and Zuelling. Therefore, the goods were not comparable, and the department's reliance on these contemporaneous imports was not valid.

Issue 3: Contemporaneous Import by VICTORIA MARINE
The Tribunal found no evidence to support the department's claim that the import by VICTORIA MARINE was a setup by the appellants. The department's suspicions were not backed by any investigation or evidence. Therefore, the contemporaneous import by VICTORIA MARINE was considered good evidence under Section 14 of the Customs Act.

Additional Considerations:
The Tribunal also reviewed the letter dated 4-7-1996 from MPEDA, which stated that the concentration of Vitamin Mixes varies according to brands, manufacturers, and feed formulae. The letter did not provide any specific standards for the concentration of vitamins in the mixes. Thus, the Tribunal concluded that there were no prescribed or recommended standards for the concentration of vitamins in the Vitamin Pre-Mix issued by any competent authority or the Import Export Policy.

Conclusion:
The Tribunal found no infirmity in the Orders-in-Appeal passed by the Commissioner (Appeals) and rejected the Revenue appeals as being without merit.