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Determining under valuation in the case of imported goods. Analysis: The appeal before the Appellate Tribunal CEGAT, CALCUTTA involved the issue of whether there was under valuation of imported Tinplate waste. The appellants had declared the CIF value of the goods as U.S. $320 per m.t., while the department alleged that the value was considerably lower compared to similar goods imported from the same manufacturer. The department relied on a computer printout showing a range of values for similar goods, and after a personal hearing, the adjudicating authority held that the value was under declared. The goods were confiscated but allowed to be redeemed on payment of a fine. The appellants appealed, and the Commissioner (Appeals) set aside the impugned order, leading the Department to appeal again. During the arguments, the Department's representative submitted that the goods were imported at a lower value compared to similar goods from the same supplier, emphasizing the quality of the goods and the interpretation of terms like "clean material" and "double reduced." The Department contended that the difference in value implied a difference in quality and supported the under valuation allegation. On the other hand, the respondents' counsels argued that the goods were not rust-free and without pinholes, and there were differences in quality, size, and thickness compared to the goods relied upon by the Department. They highlighted that the goods were used for specific purposes and were not of high quality, thus justifying the declared value. The Tribunal considered the submissions from both sides and noted that the imported material was waste, meaning the quality would vary, leading to price differences. The appellants had stated that the material was not rust-free and had differences in size, which were not rebutted by the Revenue. Given the material differences and the nature of the goods being second hand waste, the Tribunal upheld the view that the declared transaction value should be accepted. Consequently, the impugned order was upheld, and the appeal was rejected, affirming that the declared value was justified based on the specific characteristics of the imported goods.
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