TaxTMI 
TaxTMI 
2003 (11) TMI 514
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....earned Advocate, submitted that M/s. Amarson Woollen Mills (Amarson in short) imported a consignment of Greasy Wool Micron 32 and above Fleeces VM 1.3% and classified the same under sub-heading No. 5101.19 of the First Schedule to the Customs Tariff Act; that the value declared in the Bills of Entry dated 5-7-99 was US $ 1.75 per Kg in which they claimed exemption under Notification No. 20/1999-Cus., dated 28-2-1999; that the Chemical Examiner, after testing the sample drawn by the Customs Officer, reported that "the same is greasy wool having average fibre diameter less than 32 Micron"; that after rejecting their request for retest of sample, the Commissioner, under the impugned Order dated 2-1-2002, confiscated the goods with an option to....
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.... Woollen Mills (Swastika in short), the learned Advocate submitted that they had declared that the wool was of Micron 32.9 in Bill of Entry which on test by the Wool Research Association Thane was found to be 24.99 and accordingly the Commissioner of Customs, under the impugned Order dated 26-4-2002 confiscated the impugned goods with an option to redeem the same on payment of fine, enhanced the value of the goods imported by M/s. Swastika and demanded duty on the enhanced value and imposed penalty under Section 112(a) of the Customs Act. He, further, submitted that their request for retest of the sample has been disregarded; that the addition in declared value is arbitrary, misplaced and without any basis, that the Department is comparing ....
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....clared is in respect of greasy wool of 32 micron and above which cannot be accepted for the greasy wool imported by M/s. Amarson. 6. In respect of Appeal filed by M/s. Swastika, the learned Senior Departmental Representative submitted that Shri Rahul Mahajan, Partner, in his letter dated 22-2-2002, has clearly mentioned that the microns are not specifically mentioned in the Certificate attached to the Bill of Entry and he does not want to contest the test report; that Shri Mahajan has further mentioned in the said letter that he has been shown the copies of the reports of Australian Wool Exchange Reports giving the price of wool sold in Australia for the period October, 2000 and he is prepared to clear the goods on the basis of the ....
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.... that the Partner of M/s. Swastika in his letter dated 22-2-2002 has clearly mentioned that "I do not wish to challenge the test report. I accept the micron of the wool as found by the test result. I also admit that there is a mis-declaration". Even the Telegram sent by the Appellant retracting the contents of letter dated 22-2-2002 does not mention that they do not agree to the micron of the wool imported by them. In view of this the Appellants have not succeeded in establishing that the micron of the impugned wool is not what has been found on testing by the Wool Research Association, Thane. 8. In the case of import of greasy wool by M/s. Amarson, no doubt they have produced the documents received from the foreign supplier includi....
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.... therefore, find no reason not to accept the Test Report of the Chemical Examiner according to which the average micron is 29.4. We thus hold that the benefit of Notification No. 20/99-Cus. is not available in respect of the impugned goods imported by both the Appellants. 9. Once the microns of the imported wool is found to be different from what has been declared, the transaction value cannot be taken as the assessable value as there is no dispute on the fact that finer the wool, the more costly it is. The Adjudicating Authority has determined the assessable value on the strength of contemporaneous imports of wool. He has also mentioned in the impugned Order that published report of the Australian Wool Exchange shows that the price....