Misdeclaration in import valuation upheld as a knitting machine and undeclared cams were reassessed and penalised.

Imported knitting machine valuation was upheld where inspection showed the goods were a brand new machine, not a second-hand reconditioned one as declared. The accompanying 480 cams were also found in the packing but omitted from the invoice, justifying separate valuation by the Department. On the record, the invoice description and declared value were incorrect, and the reassessment adopted by the Commissioner was supported by the evidence. The finding of misdeclaration was sustained, and confiscation, redemption fine, and penalty were maintained.

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Issues: Whether the imported knitting machine and the accompanying cams were correctly valued by the customs authorities and whether the finding of misdeclaration justified confiscation, redemption fine, and penalty.

Analysis: The machine was declared as a second-hand reconditioned machine, but inspection by a Chartered Engineer showed it to be a brand new machine manufactured in March 1999, and its value was reassessed accordingly. The packing also contained 480 cams which were not reflected in the invoice, and their value was separately determined by the Department. The importer waived show cause notice, and the record supported the conclusion that the invoice description and declared value were incorrect. In these circumstances, the valuation adopted by the Commissioner was based on the evidence on record and no ground was made out to interfere with it.

Conclusion: The finding of misdeclaration and the reassessment of value were upheld, and the confiscation, redemption fine, and penalty were sustained.

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