9911796707
TMI Blog2003 (3) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... UAE, Dubai and the transaction value worked out to over Rs. 11.39 per Kg. The importer sought assessment of the goods at the transaction value. The impugned order has rejected this request and has held that assessment should be at a value of Rs. 65.26 per Kg. At the enhanced rate, the consignment value worked out to about Rs. 27.65 lakhs. The impugned order has confiscated the goods for misdeclaration of value under Section 111(m) of the Customs Act. Of course, with an option to redeem the same on payment of a fine of Rs. 10 lakhs. The Order has also imposed a penalty of Rs. 2 lakhs under Section 112 (a) of the Customs Act on the appellant. There is a separate penalty of Rs.1 lakh on the second appellant Shri Bhaskar A. Patel. The impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned Counsel further submitted that contrary to the legal provisions, the impugned order has undertaken the valuation of the goods under different methods like costing, import price of spray dried liquorice extract and Internet offer price and fixed assessable value at the Internet offer price. It is the submission of the learned Counsel that the Internet offer price cannot constitute the basis for valuation. According to him, even less so in the present case, since that Internet offer price appears to be a constant one. The learned Counsel has pointed out that while this price was adopted by the Commissioner for the proceedings initiated under show cause notice dated 12-2-2002, the appellants recent verification on 6-3-2002 has sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initial mode of transport. 5. We are not able to approve the valuation carried out in the impugned order. After considering valuation under three different methods, each yielding vastly different values of - (a) Rs. 81/- Kg (on costing basis) (b) Rs. 112/- Kg (on the basis of B/E price of spray dried liquorice extract), and (c) Rs. 65.26/- Kg. (on the basis of Internet Offer price), the impugned order has fixed the value at the Internet offer price. That Internet offer price cannot over-rule the transaction values, is well settled that there is gap between quotation and sale price is well known. That the Internet offer price in question is also not reflective of actually transacted prices is clear from the fact that i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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