2000 (7) TMI 998 - AT - Customs

Customs Tribunal overturns Commissioner's valuation decision, ruling for appellant in telephones & glassware case.

Ganapati International Versus Commissioner of Customs

Ganapati International Versus Commissioner of Customs - 2001 (130) E.L.T. 370 (Tri. - Kolkata) Issues:1. Valuation of Cordless and Push Button Telephones under Customs Valuation Rules, 1988.2. Valuation of Polyresin Leopard Clock and Drinking Glasses under best judgment.3. Confiscation of goods and imposition of fines and penalties.4. Allegations of misdeclaration and undervaluation.5. Requirement of special import license for certain goods.6. Adjudicating authority's method of valuation and evidence presented.Analysis:1. The appeal challenged the Order-in-Original by the Commissioner of Customs, Calcutta, which determined the value of Cordless and Push Button Telephones under Rule 6 of Customs Valuation Rules, 1988, and the value of Polyresin Leopard Clock and Drinking Glasses under best judgment. Confiscation of goods and imposition of fines and penalties were also ordered.2. The appellant argued that the glassware was declared correctly in the Bill of Entry, even though the invoice mentioned it as 'glassware of lead crystal.' The appellant contended that the glassware should not be considered as 'drinking glasses.' The appellant raised concerns about the lack of basis for the adjudicating authority's conclusions and questioned the need for a special import license for certain goods.3. The appellant further argued against undervaluation, stating that there was no evidence provided by the Revenue regarding contemporaneous imports of similar goods. The appellant challenged the assumption made by the adjudicating authority about undervaluation of different goods based on the telephones' valuation.4. The Revenue supported the reasoning in the impugned order, citing the ITC Policy and alleging misdeclaration and undervaluation of goods. The Revenue emphasized the necessity of a special import license for the goods in question and defended the confiscation and penalties imposed.5. The Tribunal found that the adjudicating authority's valuation method did not align with the rules as no concrete evidence was presented regarding contemporaneous imports of similar goods. The Tribunal emphasized the need for tangible evidence like Bills of Entry or invoices to reject declared values. The Tribunal also clarified the licensing requirements for the glassware, noting its free importability under the OGL.6. Ultimately, the Tribunal set aside the impugned order, ruling in favor of the appellant due to the lack of supporting evidence for the Customs' claims and the incorrect determination of the need for a special import license. The appeal was allowed with consequential relief granted to the appellant as per the law.