TaxTMI 
TaxTMI 
2010 (10) TMI 231
X X X X Extracts X X X X
X X X X Extracts X X X X
....he appellants were also not able to produce the manufacturer's invoice, nor could they give the information regarding the year of manufacture of the impugned machinery. The impugned goods were inspected by M/s. SGS India Pvt. Ltd. who submitted a detailed inspection report estimating the age of the machinery and determining a total assessable value of Rs. 13,40,159/-. The impugned Order-in-Original enhances the value of the impugned goods to Rs. 13,40,159/-, confiscates the impugned goods for violation of the Import Policy but allows redemption on payment of a fine of Rs. 5.25 lakhs. In addition, a penalty of Rs. 2,60,000/- has been imposed. On appeal by the appellants, the lower appellate authority has upheld the enhancement of the value b....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a case where the Bill of Entry was filed on 22-1-1996. The Customs Valuation Rules, 1988 have been subsequently amended on 7-9-2001 prior to the imports made in this case on 5-5-2003. Hence, the present case has to be dealt with in accordance with the Valuation Rules in force at the time of import. We find that as per the amended Rule 3(i), the value of the imported goods shall be the transaction value subject to Rules 9 and 10A. At the material time, Rule 4 also stood amended to say inter alia that the transaction value of imported goods shall be accepted provided the sales are in ordinary course of trade under fully competitive conditions and that no abnormal discounts, special discounts and reduction from ordinary competitive prices are....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ered Engineer by stating that the same is based on quoted price obtained from the internet. However, we find that, at page 4 of the inspection report, it is stated that the value assessment is based on sales price obtained from internet and not on quotations as contended. Moreover, at page 1 of the report, it is stated that the value recommended is based on documentary price comparison/verification considering various aspects including estimated useful life, physical condition of the equipment, comparison with value of similar equipments inspected in the past, enquiry with original manufacturer, average residual life etc. The report of inspection is a detailed report and the appellants had full opportunity to challenge the report itself and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hey Shyam Ratanlal v. Commissioner of Customs (Adjudication), Mumbai - 2009 (238) E.L.T. 14 (S.C.), the Hon'ble Supreme Court has held that deemed value as contemplated under Section 14(1) would prevail when the declared value does not reflect the price at which such or like goods are offered for sale. In the cited case, the Hon'ble Supreme Court also authorized placing reliance on contemporaneous documents such as Spices Board Bulletins, Public Ledger etc. for determining the Customs value under Section 14 of the Act. In the present case, we find that the declared value was very low compared to the appraised value determined as per the inspection report of the Chartered Engineer based on various factors including comparison with value of s....