Declared containers included in import value cannot be treated as undeclared goods absent misdeclaration or suppression.

Imported machinery packed in containers was declared in the import documents, and the supplier's certificate stated that the invoice value included the cost of those containers. On that factual basis, the declaration in the bill of entry could not be treated as false or incomplete, and no material supported a finding of suppression of container value. The containers were part of the declared consignment, so separate confiscation, redemption fine, or penalty was not sustainable in the absence of misdeclaration or suppression. The impugned order was set aside.

---

---

Issues: Whether the empty containers in which the imported machinery was packed were liable to confiscation on the ground of non-declaration or suppression of value, and whether there was any violation of Section 46(4) of the Customs Act, 1962.

Analysis: The import documents described the machinery as duly packed in containers, and the supplier's certificate stated that the invoice value included the cost of the containers. On this factual basis, the declaration in the bill of entry could not be treated as false or incomplete, and there was no material to support an allegation that the container value had been suppressed. The transaction was for import of machinery packed in containers, and the containers formed part of the declared supply. The settled principle applied was that where containers are part of the imported consignment and their value is included in the import price, separate duty demand or confiscation cannot be sustained in the absence of misdeclaration.

Conclusion: The allegation of misdeclaration and suppression was not established, and confiscation of the containers, together with redemption fine and penalty, was unsustainable.

Final Conclusion: The impugned order was set aside and the appeal succeeded.

Ratio Decidendi: Where imported goods are declared as packed in containers and the evidence shows that the invoice value includes the cost of those containers, the containers cannot be treated as separately undeclared goods liable to confiscation in the absence of misdeclaration or suppression.

---