TaxTMI 
TaxTMI 
1990 (2) TMI 194
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....order has observed the value as under :- "Enquiries conducted from Hongkong market revealed that the FOB price for model AF 52 of Unisef was 120 Hongkong $ per set. After deducting 10% discount, on account of import in CKD condition, the value comes to 108 Hongkong $ per set equivalent to Rs. 167.96. (At the exchange rate of Rs. 100/- = 64.30 Hongkong $ as on 19-7-1985). Enquiries conducted from Delhi Customs also confirmed having noticed under valuation in the import of model AF 52 (CKD condition) earlier and had enhanced assessable value to Hongkong $ 108 after giving due deductions. The price indicated as Hongkong $ 250 per set of a similar model (Sanyo M-1010) as per catalogue of Clementi & Co. which forms the basis for assessment purposes in baggage cases by Delhi Customs also evidenced wilful undervaluation by the importers. Enquiries conducted from market at Hongkong revealed that prevailing price of model Z-108 of Unisef was Hongkong $ 112 per set. After deducting 10% discount, on account of import in CKD condition, the value comes to 100.8 Hongkong $ per set equivalent to Rs. 156.77 (at the exchange rate of Rs. 100/- = 64.30 Hongkong $ as on 19-7-1985). The importers,....
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....re covered by Appendix 3A of AM 85-88 as detailed below :- Sl No. Description Appendix/Sl. No. Value 1(a) Tape Deck 3A (607) (21) HK $ 148176 FOB Mechanism Z 108 (b) -do- AF 52 -do- HK $ 105840" Unstuffed PCB Z 108 3A (607) HK $ 2715 " (b) -do- AF 52 -do- HK $ 26000" 3(a) Resistors Z-108 3A(607) (32) HK $ 1350" (b) -do- AF 52 -do- HK $ 1600" 4 Silicon Diodes AF 52 -do- HK $ 560" HK $ 262841" or Rs. 4,08,773.00 Freight 6,677.00 Rs. 4,15,450.00 Insurance @ 1. 825 Rs. 4,673.00 Rs. 4,20,123.00 CIF The above detailed value of the components was arrived at after allowing appropriate discount on the value ascertained from Hongkong Market and proportionately loading on the value of components declare in details attached to the invoice, after dividing the ascertained value in the percentage of 49, 28 and 23 for Tape Deck Mechanism, Plastic Moulded components and sub-assembly respectively. Entry No. 610 of Appendix 3A of AM 85-88 covers kits/ready to assemble sets, assemblies, sub-assemb....
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.... 28% and 23% and there is no basis, the valuation has been done on the basis of complete sets whereas the goods imported were in CKD condition. He has pleaded that the appellant has not been disclosed the secret enquiries conducted by the department. He has stated that the goods were seized after the expiry of the licence and there is no mention in the show cause notice that the licence was issued on 11th April, 1984 (1983-84 Policy) and was valid for 12 months and 1983-84 Policy granted two months grace period. The order was placed on 13th March, 1985. He has fairly stated that Silicon Diodes was not covered. He has pleaded that no redemption and penalty was called for. The value which the appellants had declared to be accepted. The Ld. Consultant argues that the goods were not in CKD condition but were components. 4. Shri A.S.R. Nair, the learned SDR who has appeared on behalf of the respondent stated that the appellant had imported AF 52 cassettes and Z-108 kits 3000. He has argued on the licensing part. He has argued that in the Bill of Entry the appellants had mentioned OGL and no licence had been filed. It is for the importer to file the licence. He has pleaded that resistor....
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.... on the basis of invoice of M/s. Victory Co. Hongkong. As per Victory Co.'s invoice AF 52 was priced at Hongkong $ 120 FOB and Model Z-108 was priced at Hongkong $ 112. After granting 10% discount on account of CKD parts (in place of complete unit) the correct FOB price would come to Hongkong $ 108 (Rs. 167.96) and Hongkong $ 100.8 (Rs. 156.77) respectively, whereas the goods had been invoiced as 1385 Japanese yen for AF-52 and 1220 Japanese yen for Z-108 equivalent to Rs. 69.88 and Rs. 61.55 respectively. The duty difference is alleged to work out at around Rs. 10.79 lakhs. It is not disputed that the supplier was M/s. Modern Electronics, Japan, whereas the invoice referred to and relied upon by the Department had been obtained from Hongkong. The adjudicating authority on internal page 14 of the Order-in-Original mentions that the price in Japan and in Hongkong was not exactly comparable since the question of freight and handling charges are involved from Japan to Hongkong. The invoice value is C & I basis, whereas the price quotation relied upon is FOB basis. The DRI has not produced any record to indicate contemporaneous imports of similar goods at the proposed prices, whereas t....
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.... an equivalent model M-1010 is HK $ 250 (Rs. 390). The Tribunal had occasion to deal with the Mail Order catalogue in the case of M/s. Takara Electronics v. Collector of Customs, New Delhi vide Order No. 607/85-A dated 6th August, 1985 and had followed the same in the case of Nikon Systems (P) Ltd. v. Collector of Customs 1989 (42) E.L.T. 598 (Tribunal) and keeping in view the Takara Electronics judgment, the Tribunal had ordered that 60% discount to be allowed from the catalogue price. In this case, the catalogue price in the case of Clementi & Co., is HK $ 250 (Rs. 390) for an equivalent model M-1010. Sixty per cent rebate will come to Rs. 234. The adjudicating authority in the matter before us has allowed a reduction of 25% from HK $ 120 for AF-52 and HK $112 for Z-108 and has worked out the equivalent value in rupees. CIF (HK $ 120 less 25% = $ 90 for AF-52) and HK $112 less 25% = HK $84 equivalent to Rs. 130.64 CIF under Rule 8 of the Customs Valuation Rules, 1963 subject to arithmetical correction. Keeping in view the totality of the facts and circumstances of the case and the fact that the goods were imported from Japan whereas the invoice from Hongkong has been relied upon,....
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....nst the date of shipment of the goods on 28-6-1985 i.e., well after the expiry of the licence. In other words, the TDMs and PCBs were not covered by the licence submitted. In effect, therefore, TDMs, PCBs, Resistors and Silicon Diodes were not covered by any valid licence and hence importation of the same was unauthorised and the said goods were liable to confiscation under Section 111(d) of the Customs Act. 8. Shri Srinivasan, the learned Consultant, during the course of arguments, had referred to Para 209(1) of the Hand Book of Import and Export Procedures 1983-84. Relevant parts of the said para are reproduced below: "209. (1) In order to facilitate shipment/despatch of goods against licences, a grace period not exceeding 60 days is allowed after the date on which the licence expires. In the case illustrated in sub-para 207(2) above, the period of grace will commence from the 1st December, 1983, and the licence will be completely dead on the 30th January, 1984. (2) The grace period of 60 days will also be available in the case of Customs Clearance Permits. (3) The importers can also avail of the grace period of 60 days in the case of revalidated licences. (4) The grace peri....