2000 (8) TMI 426 - AT - Customs

Summary

Issues:
1. Valuation of electronic parts imported at Bombay Port.

Analysis:
1. The dispute in Appeal No. C/9/2000-A involved the import of 'electrolytic capacitors'. The Customs authorities suspected under-invoicing based on comparisons with contemporaneous imports. The goods were found to be of Korean origin but declared as Chinese. The appellants defended stating the goods were stock lots and correctly valued. However, the Commissioner confirmed additional duty demand and penalties. The appeals challenged the enhanced duty demand and penalties imposed.

2. Appeal No. C/8/2000-A related to the import of 'electrolytic capacitors' and ICs. The Customs authorities found misdeclaration of country of origin and undervaluation. The Commissioner upheld the charges, fixed the value, confirmed differential duty, offered redemption of goods, and imposed penalties. The appellants contested the notice, arguing against confiscation and penalties due to no misdeclaration.

3. The appellants argued that the goods were stock lots of capacitors from various countries. They contended that the valuation was not done correctly for all items, and no provision allowed enhancing value on a pro-rata basis. They defended against misdeclaration charges, stating the goods were from Korea, Taiwan, and China. They also challenged the penalties, arguing against separate penalties for the concern and the proprietor.

4. The Revenue argued that the declared value was extremely low, and goods were packed to misdeclare value. They justified adopting the value of comparable goods and penalties due to intentional misdeclaration of country of origin. They highlighted the quality differences based on country of origin to support their stance.

5. The Tribunal found that separate penalties on the concern and proprietor were not justified. They agreed that enhancing value on a pro-rata basis was against Customs Valuation Rules. They upheld the rejection of invoice value and assessment based on comparable goods. The valuation for ICs based on quotation was deemed justified. The intentional misdeclaration of country of origin supported the confiscation and penalties imposed.

6. The Tribunal modified the differential duty demands and set aside the penalty on Shri Inderpal Singh in Appeal No. C/9/2000-A. In Appeal No. C/8/2000-A, they reduced the differential duty demand and confirmed the impugned order with modifications. Both appeals were disposed of accordingly.