9911796707
TMI Blog1988 (3) TMI 312X X X X Extracts X X X X X X X X Extracts X X X X ..... goods and that the value declared by the appellants was less than correct value. Show cause notices were therefore issued to the appellants on both counts. 2. After due process the Collector adjudicated the case and he found against the appellants on both counts. He confiscated the goods under Section 111(d) of the Customs Act and gave option to redeem the goods on payment of fines of Rs.3 lakhs each in respect of the two Bills of Entry. He also imposed penalties of Rs. 10,000/- each and ordered that the assessable value of the imported goods be increased to US $ to 3.55 and 3.75 per Dozen in respect of the two varieties. Accordingly the value declared in Bill of Entry No. 702 was increased from Rs. 1,23,400.10 p to Rs. 2,01,467.26 p. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Collector asking for certain invoices and other documents and another letter dated 13-1-84 requesting him to make available to them at least photo copies of Bills of Entries referred to in the supplementary show cause notice as also for supply of invoices. He submitted that only one Bill of Entry was given to the appellants. However, the appellants did not want the matter to be remanded on this ground. 5. Shri Doiphode, the learned SDR opposing the arguments submitted that the goods were not covered by the licence as they are Umbrellas for all practical purposes. He argued that Rule 2A of the Rules of interpretation had to be applied to the ITC Schedule also and as the imported goods had all the essential character of Umbrellas the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . He pleaded that the penalty imposed was very heavy as the importers did not commit any mala fide acts. 8. We have considered the arguments of both sides. The questions that arise for decision are whether the licences produced by the appellants are valid for the importation of the goods and whether the values declared by them were correctly enhanced by customs. 9. The import and export policy of 83-84 defined component as a part or sub-assembly or assemblies of which a manufactured product is made up ..... . We note that the licence was valid for the import of raw materials, components, consumables, stores and packing materials in accordance with the provisions made in para 30 (1) of para (b) Section 1 of the red book Volume II for AM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there was no justification for suddenly rejecting the importation of the present consignments under the licences produced. We, therefore, set aside the impugned order so far as licensing is concerned. 10. In view of this we are not going into the appellant s argument that they imported not a complete Umbrella but only a component part thereof. We are not examining the claim of the respondents that interpretative Rule 2A has to be applied even for licence purposes. 11. The next question to be examined pertains to the value. The ld. SDR submitted that the imported goods were complete except for the cloth and in such a situation the price declared at Rs. 2/- for ladies umbrella (9"x8") and Rs. 2.20 per piece of gents umbrella (size 21"x8") ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ozen CIF. In another case invoices of Lipton Trade International Taiwan covered identical goods at US $ 3.80 per dozen for frame size 19"x8". Price of US $ 4.00 per dozen for frame size 21"x8" CIF is available with the department. These goods were the subject matter of the investigation on the ground of unauthorised importation and undervaluation. The goods covered by invoice of import made by Lipton Trade International indicating the unit value as US $ 3.30 per dozen US $ 4.30 per dozen did not appear to have been landed at Calcutta though Bills of Entry were presented sometimes in July 1984. At the rate of US $ 5.20 per dozen as noticed in respect of the supply made by M/s. Mercantile Trading Company, the assessable value of one Topless ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case the goods imported are normal type of umbrellas. From the documents it is clear that the value proposed at US $ 3.55 and US $ 3.75 per dozen by applying Section 14(1) (b) of the Customs Act, 1962 read with clause 3(a) of the Customs Valuation Rules, 1963 are considered to be fair assessable value of the goods. On that basis the assessable value of the goods work out to Rs. 2,01,467.26". 13. The impugned order made ample allowance for any difference in value of the goods imported by the appellants. The evidence relied on by the customs to arrive at the value is reasonable and the findings are, in our opinion, also reasonable. We do not therefore find any reason to interfere with the same. As a consequence we reject the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
