Tribunal decision on SONY & SAMSUNG TV sets: Confiscation set aside, redemption fine reduced.

The tribunal set aside the confiscation and enhancement of assessable value for SONY television sets and panels, while upholding the confiscation of SAMSUNG television sets with a reduced redemption fine of Rs. 5,00,000/-.

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Issues Involved:
1. Confiscation of television sets for non-compliance with the compulsory registration scheme.
2. Valuation of imported goods.
3. Absolute confiscation of panels for SONY television sets for intellectual property rights violations.

Detailed Analysis:

1. Confiscation of Television Sets for Non-Compliance with the Compulsory Registration Scheme:
The first issue pertains to whether the television sets imported by M/s Raj Traders are liable to confiscation under section 111 of the Customs Act, 1962, due to non-compliance with the compulsory registration scheme of the Bureau of Indian Standards (BIS). The tribunal observed that SONY television sets were procured from facilities supplying to M/s Sony India Ltd, which had the requisite registration, thus making the confiscation and re-export order untenable. However, for SAMSUNG television sets, there was no evidence of registration, justifying their confiscation under section 111(d). The tribunal upheld the confiscation of SAMSUNG sets and the condition of re-export for redemption, emphasizing that the quality and safety standards mandated by the Foreign Trade Policy necessitate such registration.

2. Valuation of Imported Goods:
The second issue concerns the valuation of the imported goods. The tribunal noted that the adjudicating authority relied on prices furnished by M/s Sony India Ltd to reject the declared value, which was not in accordance with the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. The tribunal found that the adjudicating authority failed to sequentially apply the rules of valuation and did not consider contemporaneous imports. Consequently, the tribunal did not agree with the finding of misdeclaration of value for SONY television sets and set aside their confiscation under section 111(m). For SAMSUNG television sets, the valuation was deemed irrelevant as they were to be re-exported without being cleared for the domestic market. The tribunal reduced the redemption fine for SAMSUNG sets to Rs. 5,00,000/-.

3. Absolute Confiscation of Panels for SONY Television Sets for Intellectual Property Rights Violations:
The third issue involves the absolute confiscation of panels imported by M/s Ideal Impex for SONY television sets, alleged to violate intellectual property rights. The tribunal scrutinized the enforcement of the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007, and found that the adjudicating authority exceeded its jurisdiction. The tribunal highlighted that the local right holder must be notified and given an opportunity to ascertain the detriment to the intellectual property right owner, which was not done. The tribunal emphasized that customs authorities' jurisdiction is limited to preventing the entry of goods falsely claiming provenance from the intellectual property right owner. Since the prescribed procedure to detect counterfeits was not followed, the tribunal set aside the confiscation and penalties imposed on the panels.

Conclusion:
The tribunal set aside the confiscation and enhancement of assessable value for SONY television sets and panels, while upholding the confiscation of SAMSUNG television sets with a reduced redemption fine of Rs. 5,00,000/-. The appeals were allowed to the extent specified.

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