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TMI Blog2010 (2) TMI 1009X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the declared value, engaged a Chartered Engineer to examine the goods and ascertain its value. The Chartered Engineer, upon such inspection, found the goods to be old and used but in good condition with a residual life of over 5 years. He ascertained CIF value of the goods to be USD 34340 = Rs. 16,23,456/- on the basis of the value of certain contemporaneous imports. The Customs authorities worked out the assessable value of the goods, accordingly, as Rs. 16,39,690/-. On this basis, the importer was alleged to have misdeclared the value of the goods. As the goods were imported without specific licence in terms of Foreign Trade Policy, 2004-09 read with ITC (HS) Classification of Import and Export Items, the goods were also found to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the original authority had not ascertained the margin of profit and therefore the fine and penalty imposed by it on the basis of general practice is not proper and legal. It is submitted that the Customs Appraising Manual Vol. II (2nd edition published in 1990) prescribed the norms for calculation of margin of profit and accordingly the margin of profit must be 50% for non-banned category and 100% for banned category. Ld. JDR in this context submits that the subject goods are in the non-banned category and therefore the margin of profit should be taken as 50% of the CIF value of the goods. It is submitted that the adjudicating authority determined the redemption fine on this basis and the same should be restored. It is also submitted by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmula prescribed by the Board for calculation of margin of profit. This formula, which is found mentioned in Standing Order No. 7832 ibid is as follows :- Margin of Profit = Market price - Landed cost x 100 C.I.F Evidently, the margin of profit cannot be determined without market price and the latter cannot be ascertained without market enquiry. Ld. JDR has argued that the Chartered Engineer had ascertained the value of the goods after a market enquiry. However, he has not shown the Chartered Engineer s report. This apart, it appears from the order-in-original that the value of the goods was enhanced on the basis of contemporaneous import value. Apparently, the Chartered Engineer ascertained t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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