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TMI Blog2004 (3) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... -2002 and valued at Rs. 14,89,401.60 (CIF) under Section 111(m) of the Customs Act, 1962. He however gave the importers an option to redeem the goods on payment of fine of Rs. 2.00 lakhs under Section 125 of the Customs Act. He has also imposed a penalty of Rs. 50,000/- on the importers under Section 112(a) of the Customs Act, 1962. 2. Aggrieved by this order, the appellants are in appeal before us. Ld. Advocate, Shri A.K. Jayaraj invited our attention to Paras 4.0 and 4.1 of the impugned order wherein it has been mentioned that the goods covered by the subject Bill of Entry packed in 91 cartons stuffed in 1x20 container No. KLTU 1204710 lying at CONCOR CFS, were examined by the officers of Special Intelligence and Investigation Branch on 26-7-2002 in the presence of representative of M/s. Joral Shipping Services Pvt. Ltd., Chennai, the CHA. For ready reference the detailed findings of the examination as recorded in Para 4.1 of the impugned order are extracted herein below : Carton No. Description of Goods Model No. No. of sets/pcs. Total 1 to 10 PCB set of 2 pieces Z30Me 40 sets each 400 11 to 20 -d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of VCD Player was declared at US $ 50 - CIF per set. In another clearance of Samsung Brand VCD Player of Model Z300MEH/XTL a quantity of 1700 sets were imported vide Bill of Entry No. 275976, dated 12-7-2002 at an assessable value of Rs. 2,479.55/- per unit (equivalent to US $ 50.5). Therefore the import value of the complete unit of Samsung Brand VCD Player was found to be US $ 50/- per unit CIF by the department. Further recorded price for the parts and components of Samsung Brand VCD Players were not noticed in the computer data base by the revenue. He therefore submitted that they had imported parts of Model Nos. Z30Me and Model Z820Me including the alleged 30 sets whereas the department has compared the value of the complete VCD players of a different model Z300MEH/ETL (in CBU Condition) covered under invoice No. 90005018, dated 11-4-2002 imported by M/s. Samsung India Electronics Ltd., Noida and also the value of Samsung Brand VCD Player Model Z300MEH/XTL and have not found the recorded price for the parts of components of Samsung Brand VCD Players from the computer data base. In other words, Revenue has compared the price of different models that too in respect of alleged s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port Schedule. He also invited our attention to the judgment rendered by the Larger Bench in the case of Sony India Ltd. v. CC, ICD, New Delhi [2002 (143) E.L.T. 411 (Tri - LB.) = 2002 (82) ECC 436 (Tri - LB)] wherein it was held that complete assembly operation involved in the manufacture of CTV is complex and not a simple assembly operation to bring the imports under Interpretative Rule 2 (a) and the value of the complete machinery cannot be taken to arrive at the components imported by the importer. He also submitted that they have got various documents like Proforma Invoice and the form of order, invoice, packing list dated 15-7-2002, certificate of origin, etc., attested by the High Commission of India, Singapore. They have also submitted that they have taken the permission from Reserve Bank of India and through Canara Bank, Kilpauk, Chennai they have remitted the amount to the foreign supplier. In view of these documents being attested by the High Commission of India and remittance made through nationalised bank namely Canara Bank after obtaining permission from Reserve Bank of India and since there is no allegation that they have remitted the extra amount through hawala to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us case laws as pressed into service by both the sides. The goods were examined and detailed finding of the examination of the goods was recorded in Para 4.1 of the impugned order which has been extracted supra by us. We have also gone through Para 8.0 of the impugned order wherein the goods of Samsung Brand 3CD, VCD, MP3 Players Model Z300MEH/ETL (in CBU condition) covered under Invoice No. 90005018, dated 11-4-2002 raised by M/s. Samsung Electronics, Huizhou Co. Ltd., Chajiang Town, Huizhou City, Guangdon Province, China were imported by M/s. Samsung India Electronics Ltd., Noida vide Bill of Entry No. 269750, dated 2-5-2002 through ICD Tughlakabad, Delhi were compared by the revenue with the imported goods which were of Model Z30Me and Z820Me imported from M/s. T.T. International Ltd., Singapore vide their Invoice No. 73435, dated 15-7-2002 in respect of the alleged 30 sets. The order-in-original is therefore contrary to law and contrary to various judicial pronouncements by the Hon ble Supreme Court, Hon ble High Courts and various Tribunals, wherein it is well settled that goods of the same model and from the same supplier can only be compared to enhance the assessable value w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase the Commissioner has held that only 30 sets were imported, whereas from the facts of the case it appears that they have imported only various parts. Commissioner has himself admitted that 820 sets complete were imported and he was not able to find any contemporaneous import in respect of these imports and his resort for assessment purpose to Rule 8 of the Customs Valuation Rules read with Section 14 (1A) of the Customs Act is not legal and proper. In view of the above facts and circumstances we set aside the order of enhancement of value both in respect of alleged 30 sets as well as component parts. We also set aside the order of confiscation under Section 111(m) of the Customs Act. We also set aside the order of imposition of redemption fine of Rs. 2,00,000/- (Rupees two lacs only) under Section 125 of the Customs Act and also set aside the order of penalty of Rs. 50,000/- against the importers under Section 112(a) of the Customs Act. We therefore do not agree with the order of the Commissioner of Customs (Sea), Chennai that the goods covered under Bill of Entry No. 412109, dated 22-7-2002 are 30 sets of Samsung Brand VCD Players of Model Z820Me and are in CKD condition. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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