TaxTMI 
TaxTMI 
2010 (12) TMI 1140
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....3-one' with a value of US $ 25 declared by the foreign supplier. Parcel No. 10690, dated 11-7-2002 also contained 2 kgs. of the same item with the same declared value. Third parcel bearing No. 10963, dated 18-7-2002 contained 1 kg. of what was declared by the supplier as '2-Nitro Imidazole' with the same value (US $ 25/-) declared by the supplier. Test reports obtained on representative samples of the goods from the Assistant Drug Controller of the Central Drug Testing Laboratory, Mumbai confirmed the goods to be '11b- [p-(Dimethylamino) phenyl] -17b - hydroxy - 17 - (1-propynyl) Estra-4-9-dien -3-one', otherwise called "Mifepristone". On the basis of the test reports, the investigating agency suspected misdeclaration of the goods contained in parcel No. 10963, which was described as '2 -Nitro Imidazole' by the supplier. The DRI also conducted investigation into the valuation of the goods. They could lay hands on contemporary imports of 'Mifepristone', on the basis of which the value of the goods was proposed to be enhanced to US $ 8,100 per kg. under Rule 5 of the Customs Valuation Rules for the purpose of assesment to duty. The DRI also found 100 gms. of 'Mifepristone' having bee....
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....ourse of investigations was appropriated towards the dues adjudged against LCPL. 4. Shri N.P. Jajodia passed away during the pendency of his appeal and his legal heirs have taken over prosecution of this appeal in terms of Order No. M/20/2010/CSTB/II dated 15-12-2009 [2010 (20) S.T.R. 768 (Tribunal)] passed by this Bench in Miscellaneous Application No. 1985/2008. All the appellants are represented by counsel. The respondent is represented by the SDR. 5. We have heard both sides, and the summarised submissions of the counsel are : (i). The appellants cannot be held to have misdeclared anything in relation to the goods covered by any of the postal parcels inasmuch as what is deemed to be an 'entry' for import for the purpose of the Customs Act in respect of the goods imported by post is the label or declaration accompanying the goods coming from abroad as per Section 82 of the Act; (ii) The foreign supplier described the goods correctly by its chemical name in respect of parcel Nos. 10568 and 10690 (2 kgs. each) dated 8-7-2002 and 11-7-2002 respectively; (iii) Account of a clerical mistake, they described....
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....accepted to be the basis for assessment of the goods under Section 14 of the Customs Act unless there are valid reasons to reject it. According to learned counsel, the value declared by the appellants was on the basis of the supplier's invoice, which represents the transaction value, and there is no valid ground to reject it. 6. The learned SDR has reiterated the findings of the learned Commissioner. His submissions can be summarised thus : (i) For the purpose of Customs Act, the declaration of the foreign supplier accompanying the postal articles should be deemed to be the declaration made by the assessee/importer in India and, therefore, there is nothing wrong in the Commissioner's finding that LCPL misdeclared the description and value of the goods; (ii) Contemporaneous imports of identical commodity (Mifepristone) at higher value from the same country of origin are available in this case and, therefore, it cannot be said that Rule 5 was erroneously invoked; (iii) As regards, the postal parcel containing 100 gms. of 'Mifepristone', the appellants have failed to convincingly differentiate the same. 7.....
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....porter upon payment of appropriate duty. In case the parcel is detained for examination, the necessary procedure is in place under Rules 6 and 7. Rule 8, which appears to be crucial, reads thus : "If, on examination, the contents of any parcel or packet are found to be misdescribed or the value understated or to consist of prohibited goods, such parcels or packets shall be detained and reported to the Customs Commissioner, and the Postmaster shall not allow such parcels or packets to go forward without the Customs Commissioner's orders". 8.  The question agitated before us is whether LCPL can be said to have misdeclared the description and value of the goods. It appears from the records that, before they were called upon to produce invoice showing the real value, quantity, description, etc. of the contents of the parcels, they were queried by the DRI under Section 108 of the Customs Act. We have come across two statements of N.P. Jajodia, Director of LCPL, one dated 24-7-2002 and the other dated 23-8-2002. In the first statement, he stated, inter alia, that he had personally given purchase orders to the Hong Kong-based supplier telephonically and that the said company su....
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....goods, the authority should reject the declared value for valid reasons. This is the ratio of the apex court's judgment in the aforesaid cited case. We are, therefore, of the view that the value of the goods should be done afresh after giving the assessee-appellant an opportunity of being heard. In this connection, learned Commissioner can also look afresh into the question whether the appellants misdeclared the value. In dealing with this question, it is open to the learned Commissioner to refer to the relevant statutory provisions including those which we have mentioned in this order. On the question whether the description of the goods was misdeclared, we have found that two of the three parcels which were imported in July, 2002 were correctly described by the supplier and claimed as such by the importer and, therefore, there was no misdescription in respect of these parcels. In the case of parcel No. 10963, dated 18-7-2002 there is a misdescription. The goods covered by this parcel was found, on test, to be 'Mifepristone'. It was described as '2-Nitro Imidazole' by the foreign supplier. We have already noted that, under Rule 4 of the Rules made under Section 75 of the Sea Custo....