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TMI Blog1998 (5) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... d by this order of the Collector (Appeals). It is contended that they imported some of the components of Digital Recording System. It is an equipment by virtue of which Music can be recorded on the Hard Disk without going into the normal recording system on tape. It consists of various components details of which are as follows :- (1) DSP cards (2) ADDA-2218 Converters (3) Exabyte 2.4 Gigabyte Tape Drive (4) 1.2 Gigabyte hard drives Max. 880/S expander. Besides the above, the following items are essential and material components to constitute Digital Recording System : (1) At Compatible Computer (in which PCB is one of the parts, which is essential to complete the circuit of the whole system) with standard ISA bus. (2) A 2 MB Rem VGA colour graphies PCBs (3) 120 MB Hari Disck/5-1/4 floppy drive/3-1/2 floppy drive workable on LOS 3.1 of higher microsoft windows version 3.0 or higher softwares. (5) Microsoft compatible Mouse and empty bus slots on PCB for fixing of LSP system cards. (vi) Super VGA colour monitor. It was stated that the above goods did not constitute by themselves a system but they had to procure a large number of components from the local ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the department proceeded to assess the goods on the basis of the quotation received from M/s. Xavier Edward of Daxco Pvt. Ltd. 3. The Collector (Appeals) in the impugned order accepted most of the pleas urged by the appellants including the fact that there was no contemporaneous import and there is no ground to justify the reliance on Daxco s offer of October, 1992. While so, he has proceeded to hold that the approach of the department to arrive at the value is agreeable to him and at the same time holding that it suffered from the infirmity. That while considering the price in the context of the circumstantial evidence, the discount value should have been considered in the interest of fairness, equity and justice and far from being arbitrary. He has observed that there was nothing to show that some clandestine payment has been made so also no relationship between the supplier and the importer in order to depress the value as held in ATCO Industries case reported in 1992 (57) E.L.T. 654. He held that going by the rationale adopted by the Revenue the deemed value should be the price by the Singapore supplier being on at arms length and the sole consideration for sale s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly considered the arguments advanced on both sides and perused the records. The term consumer goods has been defined on page 2 of the Import Policy 88-91, accordingly, the Consumer Goods for the purpose of Import Policy will mean consumption goods which can directly satisfy human needs without further processing. In view of of this definition the imported items viz. horn, light and stickers cannot be said to be used directly for satisfying human needs. This issue is well considered in the case of Colour Chem. Ltd. (supra) and the relevant portion is as follows : one enters the grey area where at one end of the spectrum goods could be used directly for satisfying human wants whereas at the other end they become so sophisticated that they require technological skill or scientific knowledge for their operation or use and hence cannot really be called goods that satisfy human wants directly. Photocopier could not certainly be an item of domestic use but employed in large offices or institutions of a type to which the importer belongs. Further since the goods are covered specifically under Appendix 3, Part A and Appendix 6, List 8, Part I and, as such, the same are excluded from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at which the goods are ordinarily sold or offered for sale in the course of international trade and that it had been rightly accepted as the value for assessment purpose under Section 14 of the Act by the Addl. Collector. The Hon ble Supreme Court distinguished its own earlier judgment rendered in the case of Sharp Business Machines Pvt. Ltd. v. CC reported in 1990 (49) E.L.T. 630 (S.C.) and also in the case of Padia Sales Corporation v. CC reported in 1993 (66) E.L.T. 35 (S.C.) and also in the case of Commerce International v. CC reported in 1995 (77) E.L.T. 20 (S.C.). However, the Hon ble Supreme Court relied upon the earlier judgment rendered in the case of Besant Industries v. Addl. Collector of Customs, Bombay reported in 1996 (81) E.L.T. 195 (S.C.) and Collector of Customs, Bombay v. Nippon Bearings (P) Ltd. reported in 1996 (82) E.L.T. 3 (S.C.). 5. Shri R. Saroop, the learned DR reiterated the department s contention. 6. On careful consideration of the submissions made, it is clear from the impugned order that the department has not proceeded on the basis of any contemporaneous evidence, but rejected the invoice value in terms of Section 14 of the Act. Later on investi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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