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TMI Blog2024 (3) TMI 1053X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the impugned goods. Thus, there was no basis for rejection of the declared value by the Department. The quality of Patchouli Oil depends on different chemical factors including alcohol contents. The imports imported by the appellant has been assessed and customs duty has been demanded at the time of importation of the goods. The assessments have not been challenged and they became final. Subsequent to its clearance, factors such as higher value adopted for insurance cannot be a reason for rejection of the assessable value declared - After rejecting the declared assessable value, the Department has adopted the price of contemporaneous import of similar goods to enhance the value declared, without adducing any evidence to the effect that the goods are comparable. There is no evidence available on record to indicate that the Patchouli Oil imported by the appellant and the contemporaneous imports whose price has been adopted by the Department are similar in all respects. The demand of differential duty along with interest confirmed in the impugned order is not sustainable and accordingly, we set aside the same. Since, the demand of duty is not sustainable, the question of impos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in few of such imports, the value of the imported goods from the same supplier viz. M/s. K.L. Koh Enterprises Pvt. Ltd., Singapore was found to be higher than the value declared by the appellant, which is furnished below : - 3.1 From the above, it appeared that the appellant has mis-declared the assessable value of the Patchouli Oil during the period between February 2005 and May 2005. As per the value available for contemporaneous imports, USD 33.50/- per kg. appeared to be the ordinary competitive price for the said goods. Thus, the assessable value of USD 3.25/- per kg declared by the appellant was found to be very low. 4. Accordingly, a Show Cause Notice dated 31.01.2007 was issued to the appellant demanding differential Customs Duty of Rs.81,10,775/- on the goods imported vide the above two Bills-of-Entry by adopting the CIF value of the goods as USD 33.50/- per kg. 5. The Notice was adjudicated and the Ld. Commissioner vide Order-in-Original No. KOL/CUS/PORT/77/2012 dated 31.10.2012 (dispatched on 05.11.2012) wherein the Ld. Commissioner has confirmed the differential duty of Rs.81,10,775/- along with interest and equal amount of duty as penalty. The goods were held liable fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iterature, test report, etc. of the contemporaneous imports, whose price was proposed to be adopted. (iv) The officers rejected the assessable value declared by them on the value declared by the appellant for the same goods for the insurance purpose was much higher. However, there was no finding in the impugned order to reject the assessable value declared by the appellant. After rejecting the declared assessable value, the Department has adopted the price of contemporaneous import of similar goods to enhance the value declared, without adducing any evidence to the effect that the goods are comparable. There is no evidence available on record to indicate that the Patchouli Oil imported by the appellant and the contemporaneous imports whose price has been adopted by the Department are similar in all respects. (v) The investigation has relied on the statement of Shri Subhash Khandubhai Naik, Director, to enhace the value. However, a perusal of the statement given by Shri Subash Kandhubhai Naik reveal that he has categorically stated that it is not known as to how the other importers were importing Patchouli Oil at a price of USD 26 to 31 per kg; at no stretch of imagination the Patch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . KOL/CUS/ADC/65/09 dated 05.03.2009, after going through the copy of International Business Information Service . The documents submitted in that case proves that different grades of Patchouli Oil such as Patchouli Oil pure, Patchouli Oil good, Patchouli Oil Pure SPX, Patchouli Oil STD and Patchouli Oil Iron Free have different values. Accordingly, the appellant submitted that the valuation of one grade of Patchouli Oil cannot be the basis for the assessable value of other grades of Patchouli Oil. (x) Accordingly, the appellant submits that the demand of differential duty based on contemporaneous imports in this case is not sustainable. (xi) The appellant Shri Subhash Khandubhai Naik, Director of the appellant company submits that there was no deliberate violation of any of the provisions of the Act on his part, warranting penalty on him. Penalty is ordinarily imposed only in cases where there is a deliberate defiance of law; in this case, they have furnished all the relevant information in the Bills-of-Entry at the time of its original assessment; investigation has also not brought in any evidence to substantiate the claim of deliberate defiance of law by the appellants. Hence, h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the contemporaneous import price whose price had been relied upon in this case to demand differential duty, has the same alcohol content, specific gravity and refractive index as that of the goods imported by the appellant. Accordingly, we hold that rejection of the declared price by the appellant is legally not sustainable. 10.3. We observe that the appellant submitted letter dated 12.12.2005 wherein the importer clarified that the value declared by the appellant in the Invoices are true and correct. The investigation has not disputed the correctness of the contents in the letter or its genuineness. Accordingly, we observe that the appellant has established that the value declared by them at the time of importation of the goods is genuine and correct and there is no reason to doubt its correctness. 10.4. We observe that Patchouli Oil of different grades were imported by M/s. Imperial Fragrances Pvt. Ltd., a sister concern of the appellant-company, from the same manufacturer in Singapore, under Bill-of-Entry No. 276058 dated 20.03.2006. Proceedings were initiated by DRI and a Show Cause Notice dated 03.11.2006 was issued to them on the ground of under valuation of the goods imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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