2004 (10) TMI 221

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..... the customs doubted the value, the vehicle was not released pending investigation. However the appellant approached the Kerala High Court by filing a writ petition and the Hon'ble High Court ordered that the Department should complete the adjudication within a week. Accordingly the Assistant Commissioner of Cochin in his assessment Order No. 47/02 dated 12-8-2002, on the basis of Parker's guide enhanced the value of vehicle from US $ 70,000 to UK Stg PDS 80,07,659 after deduction of 15% discount and Vat of 16%. The appellants paid the duty on the enhanced value and the car was released as per the court's order. In the meantime, the department conducted investigation which revealed that the manufacturer's price for the car is US $ 1,07,395. .....

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..... of Customs (Appeals) as well as Order of the Commissioner of Customs, Cochin. In this Order three issues have to be decided. (1) The valuation of the car (2) Confiscability of the car (3) Imposition of fine and penalty. 3. As regards the value of the imported car, normally under the Customs Law the transaction value with adjustment in accordance with provisions of Rule 9 of the Customs Valuation Rules, 1988 is to be accepted for assessment purposes. There are certain situations where the transaction value will not be accepted by the Customs as per Rule 4(2) of the Customs Valuation Rules, 1988. As per Rule 4(2)(a), the transaction value of imported goods shall be accepted provided that the same does not involve any abnor .....

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..... (2)(a) which we have quoted above did not exist. Therefore, the case law cited by the learned advocate will not be applicable in this case. Under these circumstances, we uphold the Order-in-Appeal as regards the value of the car. 4. Shri P.M. Saleem, the learned SDR contended that this is clear case of misdeclaration as no one will sell custom made car for US$ 70,000 when the real price is US$ 1,07,395/-. Hence, according to him, the confiscation of the car and penalty/fine are to be upheld. The department has written to the Singapore dealer regarding the amount received by him from the appellant for the car and he had confirmed receipt of payment of US $ 70,000. So the fact remains that the transaction value is only US $ 70,000 and the .....

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