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TMI Blog2008 (2) TMI 374X X X X Extracts X X X X X X X X Extracts X X X X ..... there is mis-declaration, the transaction value declared automatically goes – revenue has right to challenge the valuation once there is mis-declaration - Tribunal not right in holding that department is not entitled to reject T.V. - 12 of 2005 - - - Dated:- 11-2-2008 - C.N. Ramachandran Nair and T.R. Ramachandran Nair, JJ. Sri. P. Parameswaran Nair, ASG, for the Petitioner. Shri C.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not scrap as claimed by the respondent, the value declared at $ 196 per M.T. was rejected and duty was demanded by estimating the value at $ 230 per MT. The value was adopted based on London Exchange metal price. Since goods were mis-declared the customs authorities ordered confiscation and released it on edemption fine of Rs. 10,000/-. Penalty of Rs. 25,000/- was imposed on the respondent. Sinc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n under Section 111(m) of the Customs Act, they were bound to accept the valuation by the department, respondent's case is that scrap and mild steel bar attract same rate of duty and therefore there is no scope for making valuation after rejecting the transaction valued by the respondent. We are unable to uphold the finding of the Tribunal that department is not entitled to reject the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Once there is mis-declaration by the importer about the product imported, the department gets right to question the correctness of valuation of goods by the assessee. In this case, the item imported as scrap was found to be otherwise and is a marketable product of steel. This finding alone is sufficient to reject the value and estimate the value and demand duty thereof. Adoption of transaction v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , and since the rate of duty is the same and difference in value adopted is less than 40% of the declared value, we uphold the order of the Tribunal cancelling personal penalty of Rs. 25,000/-. Since confiscation under Section 111(m) of the Customs Act is upheld by the Tribunal, the redemption fine is rather mandatory in nature. However, having regard to the facts found above, we reduce the redemp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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