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TMI Blog1998 (10) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... price declared was US $ 0.0425 (Rs. 0.73) per piece. On verification the goods were found to be WM 034 CY Microphone cartridge of MATSUSHITA Brand originated in Japan. The price of such cartridges as per contemporary import by M/s. PIECO Ltd. from M/s. Phillips Ltd., Japan under Bill of Entry No. 007726, dated 29-2-1990 was Japanese 19.30 (Rs. 2.14 FOB) per piece. The Collector of Customs under the impugned order, directed the assessment of impugned goods on the basis of assessable value @ 19.30 per piece, confiscated the goods with an option to the appellants to redeem the same on payment of fine amounting to Rs. 75,000/- and imposed a penalty of Rs. 25,000/- on the appellant. 3.1 Shri B.B. Gujral, learned Advocate, submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal, therefore did not uphold the charge of under valuation. 3.2 He also relied upon the decision in the case of Informatika Software (P) Ltd., Shri Bimal Khemka v. Commissioner of Customs (P), Calcutta, reported in 1997 (73) ECR 346 (Tribunal) - 1997 (23) RLT 165 (CEGAT) in which the Tribunal held that the transaction value can be discarded for the reasons given in sub-rule (2) of Rule 4 of Customs Valuation Rules and not for any other reason. In the said case as there was no evidence of any clandestine remittance of any extra money than shown in the invoice, or of any other consideration no mutuality of interest in the business of each other, the Tribunal held that it was incorrect for the adjudicating authority to hold that if any do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arison is possible only when goods are imported from one and the same place; that the Tribunal in Satya Vijay Exports Pvt. Ltd. v. C.C., 1991 (51) E.L.T. 457 (Tribunal) observed that the supplier even of the same goods supplied by a Hong Kong party and a Korean Party would make for difference in prices. He also mentioned that price in the case of PIECO had been charged for 8000 pieces whereas they had imported 70,000 pcs. and accordingly the prices cannot be compared as under Rule 5 of the Customs Valuation Rules, the transaction value of identical goods in substantially the same quantity is required to form the basis for determining the assessable value. He also contended that there being no evidence at all of any extra remittance over and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d invoice . The learned Counsel contended that the department has not adduced any such evidence at all. 4. Shri M. Ali, learned SDR, submitted that the appellants had suppressed the description of the impugned product imported by them; that imported product was a branded condenser and M/s. PIECO India had imported the same condenser which was a contemporaneous import and the value of the same could be taken for determining the value of impugned goods which were priced very low. He relied upon the decision in the case of Mangla Trading Company v. Collector of Customs, reported in 1996 (81) E.L.T. 397 (Tribunal) in which it was held that transaction value is rejectable when it is found to be underdeclared. He also relied upon the decision i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e importer. The appellants have emphasised that the value declared by them was the transaction value which should be accepted as the exceptions given under the Rules did not cover the instant case. Rule 3 of Customs Valuation Rules provides that for the purpose of these Rules (i) the value of imported goods shall be the transaction value; (ii) if the value cannot be determined under the provisions of Clause (i), the value shall be determined by proceeding sequentially through Rules 5 to 8 of the Rules. It is thus, evident that resort to Rules 5 to 8 of the Customs Valuation Rules can be made only if the value cannot be determined under the provisions of Clause (i) to Rule 3 i.e. if the transaction value cannot be determined. As per Rule 4, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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