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TMI Blog2017 (4) TMI 1075X X X X Extracts X X X X X X X X Extracts X X X X ..... aneous imports on record. Appeal allowed - order of original adjudicating authority restored - decided in favor of appellant. - Customs Appeal No.52479 of 2014 - C/A/52969 /2017-CU[DB] - Dated:- 21-4-2017 - Ms Archana Wadhwa, Member (Judicial) And Mr. V Padmanabhan, Member (Technical) Shri T R Rustogi, Advocate for the Appellants Shri Govind Dixit, AR for the Respondent ORDER Per: Archana Wadhwa Briefly stated facts of the case are that the respondent filed Bill of Entry No.5755 dated 24.03.12 for import of 13.510 Kgs. Of Branded cut and polished cubic zirconia of PRECIOSA Brand packed in 01 packet and declared classification of the same under Chapter Sub-heading No.71049000 of the Schedule to the Customs Tariff Act, 1975 and declared value of ₹ 3,57,494/-. The respondent presented invoice No.539247266 dated 21.03.2012 issued by Preciosa International (HK) Ltd., Hong Kong. On 24.03.2012, the goods were examined by the Inspector and found to be cut and polished cubic zirconia (Eurpoean Machine cut). Thereafter, Bill of Entry No.5755 dated 24.3.12 was also assessed by the Superintendent on 24.3.2012 on the declared value i.e. ₹ 3,57,494/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the adjudicating authority had reasonable cause to doubt the accuracy of the value declared by the respondent as the goods appeared to be of superior quality stone and had not accepted the transaction value initially and seized the goods on serious suspicion of gross undervaluation and started discreet investigations and obtained information relating to prices of same make and specifications as the imported goods were from the manufacturer company via e-mail which showed that imported goods were grossly under valued. The adjudicating authority had obtained transaction value of similar goods prevailing during the same time from the manufacturer company. Thus, the subject goods were to be assessed under Rule 5 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 as transaction value of similar goods (i.e. Star‟ quality / grade) sold for export to India was available with the customs authority. The test report dated 04.04.2012, testifying superior quality of the subject goods was also available with them. However, no ground has been shown by the adjudicating authority as to why the prices quoted in the price list obtained through e-mail from the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in terms of Rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and the subject goods were liable to be assessed in terms of Rule 5 of the said Valuation Rules on the price actually payable on the Star quality / grade goods when sold for export to India which was obtained through e-mail from M/s Preciosa Company. 6. The contention of the appellant, represented through their advocate Shri T R Rustogi, is that goods were purchased from the exporter, after negotiations under the trade fair and proper invoices is issued by the supplier of the goods describing the same as cut and polished cubic zirconia with the declared value as ₹ 3,53,954/-. Shri Johar, Director of the importing firm, in his statement dated 29.3.2012 explained that the MCC grade was the last range of goods of Preciosa company and the same are in the nature of leftover goods and the company does not associate its name with MCC grade and has no price list for MCC grade. A certificate dated 29.3.2012 from Preciosa Company who have supplied the goods, to that effect, was also produced before the Commissioner telling that they do not offer said MCC grade to all customers but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... types i.e. not necessarily indicating the grade of the stone. The said brilliant cut can be only one of any type and/or grade of the product. The appellants produced on record the literature showing that there can be different types of cut like round brilliant cut, tolkowsky cut and fiery cut and princess cut, without there being any reference to the grading of the goods. The literature produced on record also reveal that polish and symmetry are two important aspect of the cut and sparkle of the stone depends upon the specific cut given to it. As such, we find that the finding of the appellate authority that the goods in question are of star quality rather than the MCC grade is not based upon the authentic literature or expert opinion etc. and seems to be his own views on the topic. 9. Apart from the above, we also note that the exporter of the goods i.e. M/s. Preciosa International (H.K) Ltd. has given a certificate dated 29.3.2012 indicating that MCC is the last range of goods, adequate machine cut quality for low segment market. These MCC grade goods are not offered to all the customers but only to a selected few inasmuch as we do not want to associate our brand with an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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