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TMI Blog2000 (8) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... together for hearing and are being disposed of by this common order. 2. The dispute in Appeal No. C/9/2000-A is with regard to the import of a consignment of 'electrolytic capacitors'. The appellant sought clearance of the goods under Bill of Entry No. 10907 dated 27-1-1999. The goods were declared in the bill of entry as "Electronic Components - Electrolytic Capacitor (other than paper or power capacitors)". The value of the consignment was declared as HK $ 20856.85 (Rs. 1,15,860). The consignment comprised 8,30,404 pieces of capacitors. The consignment was supplied from Hong Kong and the country of origin of the goods was declared as China. 3. On suspicion of under invoicing and on the basis of prices observed in respect of contempora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so proposed. The appellants submitted in their reply that the consignment in question was produced as a stock lot and that the transaction value has been correctly stated in the invoice and that the goods should be assessed at the transaction value. They also refuted the allegation of mis-declaration. The case was adjudicated by the Commissioner confirming additional duty demand of Rs. 3,29,716/-. Penalties of Rs. 2 lakhs were imposed under Section 112(a) on M/s. Samrat Enterprises and Rs. 50,000/- on Shri Inderpal Singh. The appeals challenge the enhanced duty demand and imposition of penalties. 4. The dispute in Appeal No. C/8/2000-A relates to import of 'electrolytic capacitors' and ICs. In Bill of Entry No. 10915 dated 27-1-1999 the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of value of the goods, the Customs Authorities felt that, the remaining 24 items of capacitors also should be treated as undervalued and their value also increased by 4.69 times. With regard to the ICs, it was observed that their quoted price was much higher at 6.25 times the declared value, as against the declared price of Rs. 1,10,880, the quoted price was Rs. 69,326.76. The Customs Authorities were of the opinion that the ICs must be assessed at the value contained in the quotation and differential duty on account of adopting that value worked out to Rs. 1,89,181/-. In view of the Misdeclaration of country of origin and value of the goods, show cause notice was issued to the appellant proposing to increase the assessable value invol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omparable prices. The learned counsel for the appellants emphasised that there is no provision in the Customs Valuation Rules to enhance value of imported goods on a pro-rata basis. With regard to the items for which comparable values have been taken, it was submitted that the comparison of the value has not been correctly done. The contention with regard to these items is that the price has been compared with the price of capacitors of very established brand name and which were identifiable parts of various electronic machines, while capacitors imported by the appellants were not any particular parts of identified electronic goods. It has also been submitted that in the absence of any evidence to show that the appellants had made any extra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viding details regarding specifications was done to enable the sale of the capacitors depending upon their correct specifications and on identification that they are the products of a leading manufacturer, like Samsung of Korea and Toshiba of Japan. He submitted that in these circumstances, adopting the sale value of comparable goods was fully justified. He also submitted that the mis-declaration of country of origin as China while the goods were of Korean/Japanese origin is a clear indication of intention to mislead the Customs authorities about the quality and value of the goods inasmuch as it is generally assumed that the electronic goods of Chinese origin are of inferior quality while goods of Korean and Japanese origin are much superio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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