2009 (4) TMI 633 - AT - Customs

Tribunal rejects customs valuation based on floppy disk data, rules in favor of importers

COMP-U-MAX Versus COMMR. OF CUS. (SEAPORT), CHENNAI

The Appellate Tribunal CESTAT, CHENNAI set aside the charge of misdeclaration of value by the Commissioner of Customs and accepted the transaction value ... Valuation - Misdeclaration of value The Appellate Tribunal CESTAT, CHENNAI judgment involved a case where the Commissioner of Customs rejected the declared value of Rs. 13,80,050 for Imation brand computer products/accessories imported by the appellants and ordered an enhancement of value to Rs. 33,80,050. The duty was confirmed at Rs. 15,86,427, with the imported goods confiscated and an option of redemption on payment of a fine of Rs. 10 lakhs, along with a penalty of Rs. 2 lakhs imposed on the importers. The Tribunal found that the values were loaded based on rates/cost of products under import contained in a floppy recovered from the importers' office premises. The declared invoice price and Imation price lists were compared with the rates indicated in the floppy. The Tribunal concluded that the prices in the Imation price list, after extending a 40% discount due to large quantities, may not be applicable to products imported from Dubai. The product cost referred to in the floppy, prepared for applying for a bank loan, could not be adopted for determining the correct value of the imported goods due to the lack of legal provision. As a result, the charge of misdeclaration of value was set aside, and the Tribunal accepted the transaction value of the importers, thereby setting aside the impugned order and allowing the appeal. The operative part of the order was pronounced in open court on April 8, 2009.