1998 (3) TMI 463 - AT - Customs

Summary

Issues:
1. Waiver of pre-deposit and stay of recovery of duty and penalty.
2. Determination of the value of imported goods.
3. Compliance with the Tribunal's direction by the Commissioner.
4. Consideration of evidence regarding market prices.
5. Disclosure of survey report and natural justice principles.
6. Decision on appeal and remand.

Analysis:

Issue 1: Waiver of pre-deposit and stay of recovery of duty and penalty
The appellant sought waiver of pre-deposit and stay of recovery of Rs. 6,90,289 demanded as duty and penalty for imported goods. The impugned order was passed following a Tribunal direction. The Tribunal had instructed the Adjudication Commissioner to investigate the import prices and contemporary market values.

Issue 2: Determination of the value of imported goods
The Commissioner, in the impugned order, failed to find contemporary values in the international market for the goods. Consequently, the Commissioner relied on local market prices to assess the goods' value, leading to a demand for differential duty and penalties.

Issue 3: Compliance with the Tribunal's direction by the Commissioner
The appellant argued that the Commissioner did not comply with the Tribunal's direction to investigate international market prices. The Commissioner's reliance on domestic market prices was contested by the appellant, who had previously provided evidence of lower prices in the domestic market.

Issue 4: Consideration of evidence regarding market prices
The Commissioner's decision to base the valuation on local market prices was challenged by the appellant, who had submitted evidence of lower prices in the domestic market. The Tribunal found merit in the appellant's argument and ordered the Commissioner to provide reasons for disregarding the appellant's evidence.

Issue 5: Disclosure of survey report and natural justice principles
The appellant raised concerns about not being provided with the survey report used by the Commissioner to determine the retail market price. The Tribunal held that non-disclosure violated the principles of natural justice and ordered the Commissioner to provide the report to allow the appellant to rebut it.

Issue 6: Decision on appeal and remand
After considering the arguments from both sides, the Tribunal set aside the impugned order and remanded the case. The Tribunal emphasized the importance of providing the appellant with the survey report and reasons for not considering the appellant's evidence on domestic market prices.

In conclusion, the appeal was allowed by remand, and the stay petition was disposed of as the appeal was resolved.