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of <h1>Tribunal rules in favor of appellants on OGL eligibility and valuation, rejecting under-valuation claims</h1> <h3>TARA ART PRINTERS, NEW DELHI Versus COLLECTOR OF CUSTOMS, BOMBAY</h3> The Tribunal ruled in favor of the appellants in a case concerning the eligibility of goods under the Open General License (OGL) and the valuation of ... - Issues:1. Eligibility of goods under the Open General License (OGL).2. Valuation of imported goods.Eligibility of goods under the OGL:The case involved a dispute where the appellants entered into a contract for the import of a printing machine covered by the OGL. The dispute arose when the letter of credit was amended after the original opening date. The Collector of Customs held that the amendment constituted the opening of a new letter of credit, leading to the denial of OGL benefits. However, the appellants argued that the amendment only changed the shipment date due to genuine reasons and did not revoke the original commitment. The Tribunal agreed with the appellants, holding that the original letter of credit remained valid, and the goods were indeed covered by the OGL. The order of confiscation was set aside, and a redemption fine was remitted.Valuation of imported goods:The second issue revolved around the valuation of the imported goods. The Collector of Customs rejected the declared value by the appellants, alleging under-valuation based on a comparison with goods imported by another party. The appellants contended that the valuation was correct, supported by the contract, letter of credit, and bill of entry. They argued that the valuation method used by the Collector was arbitrary and lacked a solid basis. The Tribunal, citing previous judgments, emphasized the burden of proof on the department to establish under-valuation with substantial evidence. After careful consideration, the Tribunal found the charge of under-valuation unsustainable and rejected the Collector's findings. The appeal succeeded on both counts, granting relief to the appellants.This judgment clarified the validity of a letter of credit amendment in relation to OGL benefits and emphasized the importance of proper valuation methods in customs cases, highlighting the burden of proof on the department in cases of alleged under-valuation.
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