The case pertains to the valuation and classification of ...

Tribunal Rules Imported Goods as New, Not Second-Hand; Dismisses Customs Duty and Penalties for Misdeclaration.

September 6, 2024

Case Laws     Customs     AT

The case pertains to the valuation and classification of imported goods as old and used second-hand goods or unused new goods. The key points are: The Chartered Engineer's report was inconclusive and did not conclusively establish that the imported goods were old and used. The appellant provided evidence that the goods were new but supplied from old stock, which may appear old but cannot be classified as second-hand goods requiring authorization for import. The Tribunal held that the goods cannot be considered second-hand and there was no violation of the import policy warranting confiscation. Regarding valuation, the Tribunal found no evidence that the transaction value was influenced by other considerations. The value redetermined by the adjudicating authority based solely on the Chartered Engineer's report was arbitrary and unsupported, hence rejected. The differential customs duty and interest demands were set aside. The penalties imposed for alleged misdeclaration and undervaluation were also set aside as the allegations were not substantiated. The Tribunal allowed the appeal and set aside the impugned order.

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