1998 (7) TMI 357

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....d confiscated a consignment of Vapo Print Transfer Paper imported by the appellant from Taiwan on the ground that the value thereof had been misdeclared. The import was of 23,550 sheets and the invoice dated 15-11-1988 produced for the clearance of the goods showed the price as US $ 0.15 per sheet FOB Taiwan. The value appeared to be low and the Customs House issued a show cause notice proposing enhancement of price on the basis of the price of US $ 1.75 per sheet FOB Taiwan which price was as per the proforma invoice dated 20-10-1988 of another supplier from Taiwan and a quotation dated 4-10-1988 from a third supplier from the same country. The declared value of Rs. 59,673/- was enhanced to Rs. 6,90,851/- and the duty sought to be evaded b....

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....he fine imposed was excessive and out of proportion to the value of goods. In the case of Sumangal Enterprises referred to by them, the value was enhanced from Rs. 16,537/- to Rs. 29,265/- and the redemption fine was fixed at Rs. 8,000/- only. Confiscation and imposition of fine under Section 111(m) of Customs Act ordered by the Deputy Collector can be ordered only if there is mens rea. There was no foreign exchange remitted beyond the invoice value. He cited the following Tribunal decisions :- (i) 1988 (35) E.L.T. 386 (Tribunal) - Computer Karishma Pvt. Ltd., Bombay v. Collector of Customs, Bombay. (ii) 1990 (46) E.L.T. 402 (Tribunal) - Tsubo Shilpa Exports v. Collector of Customs. 3. Replying to the submissions, Sh....

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....ut requested for release of the goods. In the light of this, the plea raised about the denial of natural justice due to the order having been passed by the Deputy Collector ex parte is not valid. 5. The price adopted by the Deputy Collector which has been upheld by the Collector (Appeals) is 0.35 per piece; the rate referred to by the appellant company itself in their defence reply as having been applied by the Custom House in the case of Sumangal Enterprises. After adding the freight and insurance amounts to the FOB price declared by them, the rate worked out to 32.33 cents per piece which falls short of the price adopted by the lower authorities by about 8%. As the Custom House had noticed several imports at prices higher than the....