9911796707
TMI Blog2025 (3) TMI 1198X X X X Extracts X X X X X X X X Extracts X X X X ..... he confiscation of 'rough diamonds' imported vide bill of entry no. 5771239/09.10.2021 only partially successful. The declared value of impugned goods, US$ 7,35,000, which was re-determined at US$ 50,000 under rule 9 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and penalties imposed under section 112 and section 114AA of Customs Act, 1962 had, in appeal, favoured M/s BV Chinai & Co in full and partially to Shri Saurin Dayalbhai Thumar and Shri Kanala Viral Jjivabhai, did not accept their contention insofar on alleged discrepancy between the Kimberley Process Certificate (KPC) submitted along with bill of entry, and the goods themselves to uphold absolute confiscation thereof. It would appear that the original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration before the Tribunal was scope for re-determination of value under Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and consequential penalty under section 112 of Customs Act, 1962 even when there was no differential duty to be levied and it was, held in re Prakash Sancheti that '22. ........ The Apex Court noted that Section 113(d) empowers the authority to confiscate any goods attempted to be exported contrary to any provision imposed by or under the Act or any other law for the time being in force. The Apex Court noted that according to Section 2(33) of Customs Act, 1962, prohibited goods are defined as "any goods the import or export of which is subject to any prohibition under this Act or any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on those transactions, he did not contest those findings nor made any submissions thereon. It would not be fair on our part also to consider the past activity for the purpose of deciding whether goods have to be absolutely confiscated or not. But in our opinion the extent of over-valuation which if allowed would have resulted in repatriation of foreign currency of more than Rs. 485 crores itself would show that this is a case where no lenient view is called for. Therefore the decision to absolutely confiscate the rough diamonds under seizure has to be upheld.' 5. The only issue before the Tribunal then was the exercise of discretion by the adjudicating authority insofar as offer of redemption on payment of fine under section 125 of Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds' and, indeed, notwithstanding its utility for that purpose, deprivation of title to such goods does not appear to be contemplated by law. We also find it ironic that goods which, most certainly, should end up ceasing existence, is, by the impugned order, regularised as property of the Central Government through an appellate process and, if the confiscation does sustain, condoned despite that imperfection. We are unable to fathom the cause for such appropriation or even a proposal for securing that end. The Customs Act, 1962 does not prescribe destruction of confiscated goods which is an executive decision and confiscation does not, of itself, assure destruction. There is, thus, every possibility of 'conflict diamonds' ending up in the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alak Exports thus '8. ........... The adoption of appraised value, while relevant for invoking rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, for assessment is inappropriate as '(i) This rule by itself does not provide a method for determination of value, it provides a mechanism and procedure for rejection of declared value in cases where there is reasonable doubt that the declared value does not represent the transaction value; where the declared value is rejected, the value shall be determined by proceeding sequentially in accordance with rules 4 to 9.' in Explanation below rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 does not tolerate such substitution. 9. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
