9911796707
TMI Blog1995 (9) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants. (b) Correct valuation of the goods. 2. The brief facts of the case are as follows : The appellants herein filed a Bill of Entry No. 126, dated 27-2-1987 for clearance of a consignment of ball and roller bearings at the ICD, New Delhi. Along with the Bill of Entry, they submitted various documents including the Invoice dated 13-10-1986 of M/s. Ashwin R. Swali of England, Bill of Lading dated 25-11-1986 and the Certificate of Origin dated 17-11-1986. Subsequently, they also submitted copy of the Import Licence dated 5-7-1985 and Proforma Invoice dated 10-7-1986. As per the Invoice, the goods were 1368 pieces of assorted bearings of different brands and the value declared was Pound 1988.50 cif (Rs. 38648/-). The goods were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the goods with an option to redeem the same on payment of a fine of Rs. 25,000/-. The charge of under-valuation was also confirmed and the goods were assessed at Rs. 1,48,726/-. In addition a penalty of Rs. 5,000/- was imposed upon the appellants. Hence this appeal. 3. Appearing on behalf of the appellants, Shri G.L. Rawal, learned Counsel first draws our attention to the relevant portion of the impugned order on the nature and condition of the goods viz,. that they are unused and new. In particular, he refers to paragraphs 5 and 6 wherein the Collector, upon examination of the goods, has categorically opined that all the bearings were found new, though of old stock. He submits that once the goods are found to be new, they cannot be tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the physical examination of the goods revealed that they were unused and new, in the face of the admission made by the appellants that the goods are stock lot, the adjudicating authority has rightly treated them as disposal goods, requiring specific inclusion in the Licence. In this connection, he refers to paragraphs 4, 5, 6, 13 and 14 of the impugned order which contains the discussion regarding physical examination of the goods and the requirement of the Licence coverage. On the aspect of valuation, SDR submits that the Collector s comparison with the list price is not illegal and the Department was not required to furnish list price to the appellants, as they had waived the requirement of show cause notice. He, however, fairly submits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndition and use were concerned and this is reiterated in paragraph 14 of the adjudication order. The Hon ble Bombay High Court in the case reported in 1981 (8) E.L.T. 936 (supra), has held that the expression disposal goods occurring in Clause 5(3)(iii) of the Import Control Order must be read in the context of the expression new goods used in the same clause and that the expression disposal goods is used as contradistinction to new goods , the High Court held that once the goods imported are new then the mere fact that they are not of uniform type and size is not sufficient to warrant the conclusion that they are disposal goods and the authorities below had proceeded on wrong assumption that they are of a mixed variety and purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndertake investigation into the matter by at least asking the importers to explain the discrepancy instead of rejecting the invoice price straightaway. In this case, there is no dispute that the list prices were not disclosed to the appellants Even though the appellants waived the issue of show cause notice, we are of the opinion that this is not sufficient ground for the Collector to dispense with the requirement of putting the appellants on notice as to contemporary prices of comparable goods. For both these reasons set out above, we hold that the invoice value has to be accepted and set aside the enhanced valuation arrived at by the adjudicating authority. 6. In the light of the above discussion, we set aside the impugned order and all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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