9911796707
TMI Blog2001 (9) TMI 904X X X X Extracts X X X X X X X X Extracts X X X X ..... -95 issued in favour of M/s. Megha Apparels Inc. and transferred in their name. The total CIF value declared by the importers for the goods was US $ 7571.00 at the rate of US $ 1.00 per meter CIF. 2. The goods were examined and it was noticed that they were not polyester fabrics for making the ladies dresses but in fact they were found to be polyester velvet upholstery fabrics used in furnishing. It was also found that the declared value was low as compared to the similar goods imported by some other parties. Accordingly, a show cause notice dated 25-4-96 was issued to the appellants in which it was alleged that as per condition 6 attached to the subject licence, it was issued as per Para 47 of the Import Policy 1992-97. It was further st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable to the goods. 3. It is further alleged in the show cause notice that upholstery fabrics imported from USA by another importer M/s. Intrade Impex, New Delhi vide Bill of Entry No. 2707/14-3-96 was at the CIF value of US $ 66152.117 for 18025.1 yards. It is also stated that market enquiry in the wholesale market in Bombay had revealed that identical goods were being sold in the wholesale market at the rate of Rs. 300/- per metre and the Japanese goods were costlier than those of USA. It is further averred that converting the value of similar goods of USA origin from yard to metre, the value of the goods appears to be @ US $ 4.00 per metre CIF and the same was to be adopted under Rule 8 of the Customs (Valuation) Rules, 1988 read wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Customs (Valuation) Rules, 1988. He ordered for confiscation of the imported goods but however gave an option to the importers to redeem the same on payment of fine of Rs. 2.50 lac in terms of Section 125. He also imposed a penalty of Rs. 7.0 lac on M/ s. Sheth Enterprises Pvt. Ltd. and a penalty of equivalent amount on Shri Chandrakant Sheth, Director of the importing company u/s 112 of the Customs Act, 1962. However he dropped the proceedings against M/s. Transworld Shipping Services (I) Pvt. Ltd., the Shipping Agents. 6. The present appeals are by the appellants M/s. Sheth Enterprises Pvt. Ltd. and Shri Chandrakant Sheth against the above order of the Commissioner. We have heard Shri V.M. Dwivedi, the ld. Advocate and Shri O.P. Trive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usually having a cut pile, rich in appearance and soft to touch. He draws attention to the test report of the Customs House, Calcutta Chemical Examiner on this product, which reads as follows : Sample is a cut piece of knitted fabrics having piles on one side. It is made of all polyester . Learned Advocate for the appellants has further referred to the test report dated 18-4-96 of M/s. SASMIRA, Bombay, which reads as follows : The submitted fabric was found to have the polyester piles which are knitted along with knitting of base cloth material. Hence the submitted material can be classified as 100% polyester velvet cloth. 7. It is further contended that right since 1993 the similar type of polyester knitted velvet fabrics are be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules, 1988. It is submitted by the appellants that the method adopted by the Commissioner in arriving at the CIF value of the imported goods is completely untenable. It is stated that the goods imported by M/s. Intrade Impex, New Delhi were upholstery fabrics and not the polyester fabrics of the type under consideration. It is further stated that even on a specific request they were not provided with a copy of the market enquiry report relied upon by the Commissioner in his order and they were also not allowed to cross-examine the wholesale dealer from whom such enquiries were made. In the light of these facts, therefore, it is stated that provisions of Rule 8 of Customs (Valuation) Rules, cannot be pressed into service. 9. Shri D.K. Bh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s regards the charge of mis-declaration of the value, reliance is placed by the Department only on one import made by M/s. Intrade Impex, New Delhi vide B/E No. 2070, dated 14-3-96 under which the goods described as upholstery fabrics are imported. The particulars of this import are as follows : Fabrics are imported from USA. The price declared in respect of the cited import is US $ 66152.117 for 18025.1 yards . 12. It is observed that neither the goods under consideration are comparable to the aforementioned goods nor their quantity or place from where they are imported, are identical. Therefore, no conclusion can be arrived at for enhancing the value of the impugned goods by relying on only this evidence. There is also no document ..... X X X X Extracts X X X X X X X X Extracts X X X X
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