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TMI Blog2013 (9) TMI 704X X X X Extracts X X X X X X X X Extracts X X X X ..... le in view of the provisions of sub-rule (2) of Rule 4 of the Valuation Rules and whether there are doubting any valid goods for doubting the declared value. The basis for rejecting the value in the impugned order that the declared value is less than the average price of the raw materials - plastic, glass, metals, etc, is totally incorrect, as the prices of these raw materials in India had been adopted, while the goods have been imported from China. In any case, even if the declared transaction value is rejected, the same has to be determined by sequentially applying under Rule 5 to 8 of the Valuation Rules and the assessing officer cannot jump directly to Rule 7. Even in respect of the Rule 7 also, which provides for valuation of the goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es complete fitting" with break-up of the items as "wall lamp", "spare parts", "chandeliers", "Glasses", "Mirror Lamp", "Tube Fitting", "Bulb" and other fittings. They filed a bill of entry no.18/06 dated 6.2.2006 for clearance of the goods for home consumption through their CHA. The goods were examined 100% in presence of the officers of the Directorate General of Revenue Intelligence. On examination, it was found that in respect of certain items, viz. FSL Bulb and Halogen Bulb, retail sale price at which the same were to be sold was required to be affixed prior to their clearances, but the same had not been affixed. On the aspect of the value also, the officers were of the view that since per kg. price of the goods is much less than the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id. 1.2 The show cause notice was adjudicated by the Joint Commissioner vide order-in-original dated 3.6.2007 by which the declared transaction value of the goods was rejected and the assessable value was enhanced to Rs.7,18,890/- and the demand for differential duty was confirmed on this basis. Besides this, imported goods were held to be liable for confiscation under Section 111(d) 111(m) but since the same had been released against PP Bond, the appellant firm was directed to pay an amount of Rs.1.5 Lakhs towards redemption fine in lieu of the confiscation. Besides this, while penalty of Rs.1.5 Lakhs was imposed on Om International under Section 112(a), a penalty of Rs.50,000/- was imposed on Shri M.K. Gupta, Proprietor. An amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t jump directly to Rule 7, which is what has been done in this case, that it is not even known as to whether the wholesale dealer of the Firozabad, whose quotation about the prevailing wholesale price of the imported items has been taken as the basis for determining the value of the goods, in question, had imported the goods which are 'similar goods' or 'like goods' within the meaning of these terms, as defined in the Customs Valuation Rules, that neither the impugned order nor the order-in-original mentions the name of the wholesale dealer of the Firozabad, who has given this report, that when the very basis for rejecting the declared value is incorrect, neither confiscation of the goods for mis-declaration of value under Section 111(m) no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the goods is concerned, the declared transaction value can be rejected only if the conditions for accepting the declared transaction value as mentioned under sub-rule (2) of Rule 4 of the Valuation rules are not satisfied or in terms of the provisions of the Rule 12 of the Valuation Rules, the proper officer has reasons to believe that the declared transaction value is not acceptable and in this regard, an order has been passed by following the prescribed procedure. In this case, the impugned order does not discuss as to why the declared transaction value is not acceptable in view of the provisions of sub-rule (2) of Rule 4 of the Valuation Rules and whether there are doubting any valid goods for doubting the declared value. The basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in particular, carry maximum retail sale price at which the same in packaged form may be sold to the ultimate consumers. This provision is applicable to the commodities imported in pre-packaged form. The impugned order while holding the FSL bulbs and Halogen bulb as liable for confiscation under Section 111 (d) does not give any finding as to whether the goods imported were in bulk packages and in pre-packaged form meant directly for sale to ultimate consumers. Unless the imported goods were in pre-packaged form meant directly for sale to ultimate consumers, the provisions of Note 5(e) of the General Note of the Foreign Trade Policy read with Section 111 of the Foreign Development and Regulation Act, 1992 would not be applicable. On this po ..... X X X X Extracts X X X X X X X X Extracts X X X X
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