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TMI Blog1995 (10) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... trawlers. The invoice value was shown as Rs. 7,34,982.80. The country of origin was Japan and the goods were shipped from Singapore. The container was opened and examined in the presence of Machinery Expert Appraiser on 30-9-1993 and found to be meant for use in motor vehicles and not for trawlers. The engines were found to be old and used, they did not appear to have undergone any major repair/reconditioning and the year of manufacture was not found on the engines and most of the engines were found fitted with alternators, compressors, clutch and gear box. The goods were re-examined in the presence of Shri Saghir Ahmed who had signed the declaration on the reverse of the Bill of Entry and the representative of the Clearing Agent on 10-11-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Saghir Ahmed was staying there. From detailed enquiries regarding fair price of used diesel engines conducted by the Department in the case of import by M/s. Manjushree Minerals and Ritu Minerals and from enquiries conducted about contemporaneous imports at Madras and Bombay, it was opined that price of used diesel engines quoted in the invoice did not represent the true transaction value in terms of Rule 4 of the Customs Valuation Rules, 1988. The Department proposed fixing the value of the consignment at Rs. 16,94,828/- c.i.f. as against the declared value of Rs. 7,34,982.80. Further, the Department alleged that the goods had been imported without a licence as required in terms of Para 29 of the Import-Export Policy, 1992-97. The fur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 12,500.00 + 1,275.00 = Rs. 13,775/-. 8. Nissan engine with gear and compressor - 1800 cc - Rs. 22,000 + Rs. 1,275 = Rs. 23,275.00. 9. Nissan engine with gear but without compressor - Rs. 22,000.00. 10. Magnum Mazda with gear and compressor 1500 cc - Rs. 12,500.00 + Rs. 1,275.00 = Rs. 13,775.00. 11. Suzuki rim 1 set = Rs. 392.00. 12. Alternators fitted with engine - Rs. 882.00. He also held that the importation was unauthorised in the absence of any specific licence to cover the goods and accordingly upheld the liability of the goods to confiscation, upheld the charge of clandestine import of the goods by a fictitious firm which had fraudulently obtained the Import Export Code No. He also upheld the charge of misdeclaration o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the consignment for the purpose of customs duty. (e) Whether the goods had been imported in the name of a fictitious firm. 4.1 At the time of clearance of the goods, the importers submitted invoice from M/s. Fateh Marketing and Trading P. Ltd., Singapore, no copy of any letter of credit or contract was produced along with the invoice. The Department found the following discrepancies vis-a-vis the declarations for the details of engines as per the invoice and bill of entry. Whereas the invoice and the bill of entry indicated only as old and used with the make and quantity, while the detailed examination revealed that these were of the capacity in the range of 1000 cc to 1800 cc found fitted with or without gears, alternators, clutch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00/- is equivalent to US dollars 235/-, according to the learned Counsel) and hence the invoice price should be accepted. We find from a careful reading of the impugned order that these orders referred by the learned Counsel were not put forth before the adjudicating authority and what was urged before the Collector was that at the relevant point of time in India, the Customs Houses in India was releasing similar goods at an average price of US Dollar 235 per piece for used diesel engines having capacity of 1000 to 1800 cc and that the adjudication orders in the case of Manjushree Minerals and Ritu Minerals were under appeal. The challenge to valuation by M/s. Manjushree Minerals and Ritu Minerals cannot be a ground for holding that the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the imported goods, the claim of the appellants before the adjudicating authority was that the goods do not appear in the negative list of AM 1992-97 of the Import and Export Policy. However, Paragraph 29 of the said Policy stipulates that all the second-hand goods, other than capital goods, may be imported in accordance with the Public Notice or Licence issued in this behalf. There is no dispute that the items imported are old and used diesel engines and also these are not capital goods. Hence import of the same can be allowed only in accordance with the Public Notice or Licence issued in this behalf. The Collector has rightly held that in the absence of any Public Notice in this regard and in the absence of any import Licence to cove ..... X X X X Extracts X X X X X X X X Extracts X X X X
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