Specific customs duty and licence value debiting: CIF valuation could not justify confiscation without evidence of manipulation.

In imports of dry fruits where customs duty was specific rather than ad valorem, duty evasion was not in issue. CIF value is ordinarily not to be debited against licence value, and that approach is justified only where there is satisfactory evidence of additional consideration flow or other manipulation. As no such evidence was present, debiting the assessed value against the licence value was unsustainable. The consequential confiscation and redemption fine were also not justified and were set aside.

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Issues: Whether, in imports of dry fruits where the customs duty was specific and not ad valorem, the assessed CIF value could be debited against the licence value and whether confiscation and redemption fine were sustainable.

Analysis: Since the duty was specific, no question of duty evasion arose. Ordinarily, CIF value is not adopted for debiting against the value of a licence. Such a course may be justified only where there is satisfactory evidence of flow of additional consideration or other manipulation, and no such circumstance was present. The orders debiting the assessed value against the licence value and the consequential confiscation and redemption fine were therefore not justified.

Conclusion: The debiting of the assessed value against the licence value, confiscation, and redemption fine were set aside.

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