Imported goods not liable for confiscation, but face penalties for lacking valid license under Customs Act.

The Tribunal found that the imported goods were not liable for confiscation due to the lack of legal justification to enhance their value based on a previous import. However, the goods were held liable for confiscation under the Customs Act for being imported without a valid license under the current Import Trade Control Policy. The Tribunal reduced the redemption fine and penalty imposed by the Collector, ultimately disposing of the appeal with modified fines and penalties.

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Issues:
1. Valuation of imported goods
2. Interpretation of Import Trade Control Policy

Valuation of imported goods:
The appellant imported a consignment of Lap Top Computers at a lower price than a previous import. The Collector of Customs upheld the charge of mis-declaration of value, leading to confiscation of goods under Section III(m) of the Customs Act. The appellant argued that the transaction value should be accepted under the Valuation Rules, 1988. The Tribunal found no legal justification to enhance the value based on the previous import, as the contracts were not contemporaneous. Consequently, the goods were not liable for confiscation.

Interpretation of Import Trade Control Policy:
Regarding the Import Trade Control Policy, the Collector ruled that the goods required a valid license for clearance under the current Policy. The appellant's reliance on the old Policy was rejected due to an extension in the letter of credit made after 31st March 1990. The Tribunal analyzed para 204(6) of the AM 1990-93 ITC Policy, which stated that any extension in the letter of credit after 31st March 1990 would be treated as a fresh commitment. The Tribunal distinguished previous case law cited by the appellant, upholding the Collector's decision that the goods were imported without a valid license. As a result, the goods were held liable for confiscation under Section 111(d) of the Customs Act.

The Tribunal reduced the redemption fine imposed by the Collector from Rs. 7,25,000 to Rs. 3,00,000 and the penalty from Rs. 75,000 to Rs. 25,000, considering the circumstances of the case. Ultimately, the appeal was disposed of with the above modifications to the fines and penalties imposed.

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