2007 (4) TMI 29

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....to duty on merits, the benefit of the above Notification was given to the assessee subsequently on production of the manufacturer's catalogue. However, later on, SIIB, after investigations, found that the goods was actually a spectrophotometer only and not a computer colour matching equipment. The original authority enhanced the value of the goods to Rs. 3.50 lakhs after reclassifying the goods under CTH 90273020, and also denied the benefit of the Notification to the assessee. The authority also ordered confiscation of the goods under Section 111(d) of the Customs Act with option for redemption against payment of a fine of Rs. 70,000/-. It also imposed a penalty of Rs. 5,000/- on the importer. In appeal, the Commissioner (Appeals) only set....

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....bsence of exception circumstances specified under Rule 4(2) of the Customs (Valuation) Rules, 1988, the declared value was liable to be accepted. Learned SDR reiterated the findings recorded by the Commissioner (Appeals) on the issues relating to the Customs Notification and the value of the goods. However, it was submitted that the Commissioner erred in setting aside the fine and penalty imposed on the assessee by the original authority. 4. After examining the records and considering the submissions, we find that "computer colour matching equipment" mentioned as Item No. 26 in List 36 appended to the above Notification read with Sl. No. 251 of the Table annexed to the Notification was eligible for the benefit of concessional rate of dut....

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....urpose". It was apparently on this basis that the appellate Commissioner upheld the enhancement of value to Rs. 3.50 lakhs. We find that none of the reasons stated by the lower appellate authority constituted any exceptional circumstance specified under Rule 4(2), of the Customs (Valuation) Rules. It is settled law that the assessing authority has to reject the declared value on any one of the grounds specified under Rule 4(2), before proceeding to determine the correct assessable value of the goods under the Rules. This procedure was not adopted by the lower authorities. 6. In the context of arguing for the benefit of the Notification for his clients, learned Counsel submitted that other importers of similar equipment obtained the benef....