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TMI Blog2006 (7) TMI 471X X X X Extracts X X X X X X X X Extracts X X X X ..... both the companies. 3. The duty demands and penalties are in regard to 14 imports of Printed Flock Fabric made by the first two appellants during the period February, 2000 to May, 2002. The imported fabrics were the manufacture of M/s. Microfibre Inc., USA and M/s. Mircofibre, Belgium. The appellants cleared these goods from the Customs by producing invoices issued by M/s. Hi Lingos Co., Taiwan and M/s. Gudami International, Singapore and M/s. Esspex Corp. Y.K., Japan. The prices mentioned in the invoices were accepted by the Customs authorities as assessable value and customs duty collected accordingly. However, subsequent investigations showed that the actual transaction was between the USA/Belgium manufacturers and the Indian importe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. It is being contended that the appellants being alien to the transaction between the American/Belgium manufactures and the traders of Singapore/Taiwan/Japan, those transaction values have no relevance for the assessment of the goods imported by the appellants. 6. As regards the commercial nature of the purchase prices the appellants have a contention that though the invoices of the manufacturers showed higher prices, those prices were not final inasmuch as the understanding between the traders and the manufacturers was that the net payment would be at much lower price (at around the sale prices to the appellant Indian importers). 7. During the hearing the learned Counsel for the appellants has also made a grievance that the order has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies in interviews with the Customs authorities of these countries. The ld. SDR has taken us through these documents and has emphasized that the entries in these documents and evidence of the company officials reveal that the transactions were between the manufacturers and the Indian importers and the prices were as found in the impugned order. Thus, the contention of the learned SDR is that the actual transaction value of the goods remains fully established as the sale prices of the USA and Belgium manufacturers and the duty demands made in the impugned order based on those prices are in terms of the provisions of the Customs Valuation Rules and the appellants are required to make pre-deposit of the amount of duties. It is also being emphas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be the transaction value of the goods. In the present cases, the evidence establishes that the transaction was between the Indian importers and the foreign manufacturers. The Singapore/Taiwan/Japanese traders were introduced merely for the purpose of procuring invoices showing much lower value. Therefore, the revenue authorities are right in demanding duty based on the true transaction value of the goods. 12. The evidence is also clear that the third appellant is the person who arranged the fraudulent evasion of customs duty. The seized records as well as the evidence obtained from abroad clearly bring this out. Therefore, he is clearly liable to penalty. 13. In view of our findings above, we are clearly of the view that there is no jus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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