2007 (3) TMI 55

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....ermination of Price of Imported Goods) Rules, 1988 and determined the assessable value to Rs. 3,62,79,200/- and levied differential duty of Rs. 1,02,51,595/- on the goods, confiscated the goods with an option to redeem them on payment of fine of Rs. 50 lakhs and imposed penalties of Rs. 30 lakhs, Rs. 10 lakhs, Rs. 5 lakhs and Rs. 2 lakhs on the importer, its partner, M/s. FKI Extrusion (India) Pvt. Ltd. treating them as the agents/India Office of the Korean manufacturer/supplier and its Director respectively under Section 112(a) of the Customs Act, 1962. 2. The case of the department, in brief, is that during the examination of the imported machine, it was noticed that the model Number was mis-declared as having 120 mm extruder whereas the....

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....t he did not know why there is a difference in the value. He also stated that the value shown in the invoice issued to M/s. Suyog Extrusions appeared to be on the lower side. Shri Darpan Jain's statement was recorded on 28- 8-2000, when he was asked, as to when the machines imported by him in July 2000 and by M/s. CIMMCO International in February, 1996, though identical, show difference in value, he inter alia stated that the machines were tailor made as per customer requirement and that the manufacturer had not sold machines with 125 mm extruder since 1995 and that there was recession internationally. On the basis of the above, the department alleged that M/s. Suyog Extrusions had under valued the goods imported by them with intentions to ....

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....Ltd. v. CC, Visakhapatnam [2000 (116) E.L.T. 715] and Karan Vir Mehta [1998 (97) E.L.T. 42 (Ker.)], it has been laid down that the quotation/Proforma invoice being a tentative statement of the seller for sale of goods at the price mentioned therein, is not relevant evidence of sale price in the absence of actual import in pursuance of such a quotation. In the case of Eicher Tractors Ltd. cited supra, the Apex Court has clearly laid down the principles and the situation where the transaction value can be doubted by the Revenue. In the present case, the Revenue has not produced/brought on record any evidence to discard the value declared by the importers. On the other hand, the importers have produced the certificate issued by the foreign sup....