TaxTMI 
TaxTMI 
2011 (9) TMI 421
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....1. M/s. Peace International imported 6100 pieces of 'metal cabinet' fitted with PCB CDM, screws and hardware for car CD player without any model/brand and declared the unit price for the said metal cabinet at US $ 6.65 vide Bill of Entry No.113624 dated 31/08/2009. The goods were imported from Singapore and the supplier was M/s. Simoniz Trading Imports & Exports, Singapore. The Country of Origin of goods was declared as China and proforma invoice No. 0488 dated 04/08/2009 and packing list No. 6080 dated 18/08/2009 were also submitted along with the Bill of Entry. 2.2. The department had intelligence that Sony brand 'metal cabinet' fitted with PCB CDM, screws and hardwares for car CD player was being imported by misdeclaring t....
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....orked out to Rs. 1,749/-. 2.4. On this basis, the value of the goods under importation was arrived at Rs. 1,06,68,900/- and the duty thereon worked out to Rs. 26,05,490/-. Accordingly, show cause notice was issued to the importer proposing to assess the goods at Rs. 1,06,68,900/- demanding duty of Rs, 26,05,490/-, proposing to confiscate the goods under Section 111(m) of the Customs Act, 1962 read with Rule 11 of the Customs Valuation (Determination of Value of Imported Goods) Rules 2007, and also proposing to impose penalties under Section 112(a) and also under Section 114(a) of the Customs Act, 1962. 2.5. The appellant contested the notice and submitted that what they have imported is only unbranded black body of ....
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....s Act, 1962 on Shri John Miranda, proprietor of Peace International and a further penalty of Rs. 2 lakhs under Section 114(a) of the said Customs Act. The appellant, thereafter, preferred an appeal before the Commissioner (Appeals) who vide the impugned order set aside the order of the original authority and allowed the appeal. The department is in appeal against the impugned order. 3. The grounds alleged in the appeal are that the case under consideration is not a case of value enhancement but a case of misdeclaration of imported goods in relation to the brand/make/model and value thereof. The importer did not produce the manufacturer's invoice in spite of specific request from the Customs but merely gave the reply that the manufacturer....
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....100 pieces, the value of US $ 6.65 declared compares favourably for the Sony brand products imported from China or Hong Kong for the same models which the department alleges to be the goods under importation. Thus, the department has completely failed to establish the case of undervaluation or misdeclaration and therefore, the lower appellate authority has rightly allowed their appeal. 5. After hearing both sides, we are of the view that the appeal itself can be disposed of at this stage. Therefore, after granting stay of the recovery of dues adjudged, we take up the appeal itself for disposal. 6. We have carefully considered the rival submissions. 6.1. As regards the opinion of Shri Prashant Mohan Deshpande, relied upon by the dep....
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....lete product. The best example is that of computers which are assembled at site using the parts manufactured by various well known computer manufacturers; so is the case with the car audio CD players. Merely because some parts contain the markings of 'Sony', it does not mean that the complete or fully assembled product is of 'Sony' brand or 'Sony' make. Thus, it is seen that no conclusive evidence has been led by the department to establish that the product under importation is 'Sony' brand. If that be so, the Customs could not have arrived at the value of the goods under importation on the basis of 'Sony' products/models. Further, the importer in the instant case, has provided NIDB data which is Customs own data bank to show that the....