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TMI Blog2018 (7) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... ted. Penalty u/s 112(a) of CA - Held that:- The enhancement of value is due to suppression of the fact related to the contract of licence. Since this fact was not known to the courier M/s DHL, he can not be implicated for misdeclaration of value due to non inclusion of licence fees - penalty set aside. Appeal allowed in part. - Appeal Nos. C/469, 473/2009 - A/86930-86931/2018 - Dated:- 12-7-2018 - Hon ble Mr. Ramesh Nair, Member (Judicial) And Hon ble Mr. Raju, Member (Technical) Shri Mehul Jivani, C.A., for appellant Shri Manoj Chavan, Superintendent (AR), for respondent ORDER Per : Ramesh Nair Brief facts of the case are that the Appellant M/s Sahara One Media Entertainment Ltd. had imported 19 Beta Tapes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of ₹ 15758/- @ 1.125% and exchange rate of US $ 1 = ₹ 39.85 the assessable value came to ₹ 14,39,478/-. 4. In case of BE No.40898 dt. 30.12.2007 produced copy of licence agreement dt. 01.09.2007 with M/s Dori Media International GmbH. As per the said agreement the importer was required to pay licence fee of US$ 1000 per episode for 116 episodes. The total licence fee to be paid under the agreement was US $ 1,16,000. The licence fee being paid for the 16 episodes being imported in said BE was US$ 16000. Taking actual freight of ₹ 8056/-, and insurance of ₹ 7241/- @ 1.125% and the assessable value came to ₹ 6,62,646/-. 5. They were issued show cause notice that the licence fee is liable to be inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... grammes in India. They have in their invoice only declared the cost of CD without disclosing the facts of payment of licence fee. The Courier M/s DHL accordingly declared the said value in Bill of Entry as he was not aware of the licence amount and agreement of providing licence to the Appellant. That error had happened due to miscommunication between the exporter, courier and the Appellant and there was no intention to evade duty. They themselves instructed the courier to file regular Bill of Entry after including the licence fee. The Adjudicating Authority held that the licence Fees/Royalty were includable in assessable value in terms of provision of Rule 10(1)(c) of Customs Valuation Rules, 2007. The importer has to make declaration as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mum), K.H. Arind (2006 (205) E.L.T. 674) (Tri.-Chennai), Photophone Ltd. (1994 (73) E.L.T. 157) (Tri) to submit that since the imported goods are for their own use the Redemption Fine and penalty be reduced. 8. Shri Manoj Chavan, Superintendent (A.R.) appearing for the revenue supports the impugned order and submits that since mis-declaration of value has been made therefore the impugned order has been rightly passed. 9. Heard both the sides and perused the records of case. We find that the Adjudicating Authority has imposed Redemption Fine and Penalty holding that even if the mis - declaration is unintentional than too the confiscation of goods, duty and Penalty would be imposable. The Appellant has contended that they had given clea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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