9911796707
TMI Blog1994 (9) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... ill of Entry for clearance of 27,96,762 pcs of Rectifier Diodes and the value of the entire consignment was declared as HK$ 33,561.14 on the basis of the invoice raised by M/s. Honey Technology Ltd, Hongkong at the rate of HK$ 0.012 per piece. On specific information received by SIB that the value and quantity of the Diodes in the subject consignments were misdeclared, the Bill of Entry has been recovered and on being examination of the goods it was found that the quantity of Diodes imported was ascertained to be 65,50,925 pcs as against 27,96,762 pcs and the value declared was also less compared to the prevailing market rate. After considering the detailed submissions, the facts and circumstances of the case the Collector who adjudicated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the country of origin was not mentioned but again it was not the mistake of the importer but of the supplier. The importer imported the goods in good faith believing supplier to be the manufacturer since the supplier posed themselves as manufacturer and for not mentioning the country of origin by the supplier the appellants should not be penalised since the appellants had no benefit to gain therefrom. Sh. R.G. Merchant, learned Counsel submitted that the Collector erred in enhancing the value in the absence of any evidence to show that the extra payment was made by the importer to the supplier in excess of the transaction value and nothing to suggest there existed special relationship between the appellants and the supplier. As can be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal in the case of Prahlad Industries, Moradabad v. Collector of Customs, Bombay - 1987 (29) E.L.T. 57 (Tribunal). He said that the enhancement of transaction value on the basis of mere telex quotation or offer is not permissible and manufacturer s invoice is the best evidence which represent the transaction and in support of his contention, he referred to the decision in the case of Laxmi Colour Lab. v. Collector of Customs - 1992 (62) E.L.T. 613 (Trib.) and in the case Sai Impex v. Collector of Customs - 1992 (62) E.L.T. 616 (Tribunal). He also submitted the penalty was unwarranted and in imposing the penalty the requisite mens rea has to be established for imposition of penalty relying upon the decision in the case of Akbar Badruddin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... similar imports were imported by the appellants and same could not be compared in the absence of the goods and the relevant Bill of Entry and in view of the fact that the goods were of different country, the collector has adopted Rule 8 of the Valuation Rules in determining the value and it was rightly done. He said that different varieties of Diodes were imported by the appellants and the price worked out in respect of each category based upon the market price and working sheets supplied to the appellants showed the details therein. He said that since there has been mis-declaration of the goods, the invoice value is to be rejected and he referred to the decision of the Tribunal in the case of Shiv Shakti Enterprises v. Collector of Custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce does not arise as it was rightly argued by the learned JDR. But as regards the valuation, we concur with the argument advanced on behalf of the appellants that the burden lies on the Department not only in bringing the sufficient evidence on record but also same should be disclosed to the other side for rebuttal while determining the value of the goods. The quotation is only in the nature of an offer and in the absence of concluded contract and the actual imports in pursuance to quotation, no reliance can be placed and the quotation cannot be taken as the basis of enhancement of the value as it was rightly argued by the appellant Counsel. In the instant case it was brought to our notice the quotation was not sole basis in determining the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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