TaxTMI 
TaxTMI 
2006 (6) TMI 391
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....- The appellants imported sixteen consignments of secondary/defective CRGO Electrical Steel in the form of Sheets, Coils, Strips and Cuttings, under different Bills of Entry. The DRI Chennai, on receipt of information that the appellants were undervaluing the goods, and violating the Exim Policy and the conditions of Customs Exemption Notifications examined the goods. The unit price of the goods was declared as US $ 250 PMT for CRGO Electrical Steel Strips and US $ 300 PMT in respect of other varieties. The goods were seized under reasonable belief that they were under valued. Statement of Shri Nilesh Parekh, Partner, was recorded on 3-5-2001 in which he inter alia stated that the firm was engaged in the manufacture of Transformer Cores for....
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....ased on execution of bond and bank guarantee. It was found that the value declared for the goods in question at Mumbai, ranges between US $ 450 to US $ 875 PMT, from US $ 480 to US $ 727 PMT from Mulund ICD and US $ 485 to 750 PMT at Nhava Sheva. Contemporaneous imports through Chennai Port, at values ranging from US $ 550 to US $ 675 PMT was noticed, while the appellants had invoiced the goods from the same supplier at US $ 300 PMT. The values declared through Chennai Port were in the range of US $ 210 to US $ 350 PMT as compared to the minimum value of US $ 485 PMT at Mumbai Port. Hence, it was proposed that the lowest value declared at Mumbai Port be adopted for assessment of the goods in question cleared through Chennai, ranging from US....
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....es of US $ 400 PMT for strips and cuttings and US $ 525 PMT for coils and 48 bills of entry in 2000-2001 declaring values ranging from US $ 210 to US $ 300 PMT for steel strips and cuttings, US $ 210 to US $ 450 for strips and coils, US $ 300 to US $ 520 for coils/sheets and US $ 350 for coil ends/cuttings. The Commissioner has enhanced the value to the same extent as in his order giving rise to Appeal No. C/993/2002 and in respect of sheets, value has been loaded to US $ 580; duty demand of Rs. 2,19,15,960/- has been confirmed together with interest; goods have been confiscated with an option to redeem the goods on payment of fine of Rs. 55 lakhs and penalty of Rs. 15 lakhs has been imposed. 5. C/1295/2002 - The importer is M/s. Al....
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.... statement of his brother Shri Mahendra Parekh. Ld. Advocate takes us through the statements to emphasize that he only agreed to enhancement and to pay duty on the loaded value, so that the goods could be provisionally released, and they could be used in the manufacture of their final product as per their production schedule and also to reduce ground rent and demurrage. We agree with the ld. Advocate that Shri Mahendra Parekh's statement cannot be interpreted to mean that he has admitted any under valuation of the goods and we also note that enhancement in value cannot be based on statements, in the light of the ratio of Tribunal's decisions in Selection Enterprises [2005 (183) E.L.T. 273] and Sree Rajendra Mills [1997 (90) E.L.T. 68]. Furt....
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....tress the argument that the appellants had declared the correct value, and submit that such values have been accepted by Chennai Customs. 11. We also find substance in the contention that there is a variation between the prices of goods imported through Mumbai Port and through Chennai Port for the reason that, while the goods imported at Mumbai were under contract containing a guarantee clause, contracts under which the Chennai imports took place had no such clause. 12. There is yet another reason for rejecting loading and that is while applying Rule 8 of the Customs Valuation Rules, for determining the value of the goods the Commissioner has adopted Rule 8 read with Rules 5 and 6, which deal with the valuation of similar/id....