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of <h1>Tribunal Upholds Decision on Imported Goods Valuation & Penalty</h1> <h3>COMMISSIONER OF CUSTOMS, CHENNAI Versus COMPETENT BUSINESS MACHINES</h3> The Tribunal upheld the decision of the lower appellate authority regarding the valuation, confiscation, and penalty imposed on the imported goods. The ... Valuation(Customs) – Alleged that goods were proposed to be confiscated under under Section11(d) of the CA and according penalized and enhanced the value for purpose of levy of duty – After considering the details rejecting the enhancement of value Issues:1. Valuation of imported goods declared as old/used components of photocopiers.2. Confiscation of goods under Section 111(d) of the Customs Act.3. Penalty under Section 112(a) of the Act.4. Appeal against the decision of the lower appellate authority.Issue 1 - Valuation of Imported Goods:The respondents declared the value of old/used photocopier components at US$ 9968 (C&F) based on the supplier's invoice. However, upon examination, a Chartered Engineer assessed the value at US$ 22,743 (C&F). The goods were found to be second-hand capital goods over 10 years old, requiring a specific import license under the EXIM Policy 2002-07. The original authority enhanced the value to Rs.10,45,298 (CIF) for duty levy purposes. The Commissioner (Appeals) accepted the declared value, reducing the redemption fine and penalty. The appellant challenged this decision, arguing that the importer's acceptance of the enhanced value precluded challenging it later. The Tribunal upheld the Commissioner's decision, noting flaws in both overseas and local Chartered Engineer certificates and rejecting the enhancement without proper justification.Issue 2 - Confiscation of Goods and Penalty:The original authority confiscated the goods under Section 111(d) of the Customs Act, offering redemption upon payment of a fine of Rs.3 lakhs and imposing a penalty of Rs.1.5 lakhs on the importer. The Commissioner (Appeals) reduced the redemption fine and penalty to Rs.1.5 lakhs and Rs.75,000, respectively. The appellant contested this reduction, claiming the lower authority did not provide reasons for the adjustment. The Tribunal found the reduction reasonable, indicating a sound exercise of discretion, and declined to interfere with it.Issue 3 - Appeal Against Lower Appellate Authority's Decision:The Revenue challenged the Commissioner (Appeals)' decision to accept the declared value of goods and reduce the redemption fine and penalty. The Tribunal observed that the challenge against the rejection of the transaction value without invoking relevant provisions lacked support from binding judicial authority. It upheld the Commissioner's decision on valuation and the reduction of fine and penalty, dismissing the appeal.In conclusion, the Tribunal sustained the impugned order, dismissing the appeal and upholding the decision of the lower appellate authority regarding the valuation, confiscation, and penalty imposed on the imported goods.
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