TaxTMI 
TaxTMI 
2017 (4) TMI 1042
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry of origin and invoices issued by the exporter M/s. Mount Overseas (HK) Ltd., were attached along with Bill of Entry. As the goods were purchased by the appellant on high seas sales basis from one M/s. S B International, Jaipur, the invoices issued by the high seas seller was also produced. 2. Entertaining a doubt about the under-valuation of various sizes of the drawer slides, the Revenue undertook investigation. Samples of the each size of drawer slides were drawn, net weight of a set (having two pieces) were taken and proceedings recorded under a panchnama dated 28.8.2008. Market inquiries were conducted by the Revenue from local wholesale traders of Jaipur namely M/s. Delhi Hardwares as also M/s. Rajasthan Fitting House Pvt. Ltd. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to Jaipur and Central Sales Tax and local sales tax etc. During his subsequent statement, Shri Aman Bansal, proprietor of M/s. Aman Trading Company deposed that they had purchased the goods from M/s. Mount Overseas (Overseas Exporter); which is a trading company and is not a manufacturer of the imported goods; that the impugned goods are known in the market as Drawer slides Telescopic and description given by them is drawer slides; that the order for the goods was placed by him during his visit to trade fair in China; he was shown another Bill of Entry relating to HM scrap of another importer which was assessed on value per Kg. basis; based upon the said value of scrap, the declared value of the Drawer slide is less than the value of steel ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 3.3.2009 proposing to enhance the value of the goods from Rs. 4,39,317/- to Rs. 29,17,335/- ; to confirm the differential duty of Rs. 9,24,895/-; to confiscate the seized goods, and to impose penalties upon the appellant under various sections of the Customs Act. The said show cause notice resulted in passing of present impugned order and confirming the proposals made in the show cause notice. 5. Hence the present appeal. 6. We have heard both sides duly represented by Shri A K Prasad and Ms. Priyanka Goel, learned advocates appearing for the appellant and Shri K Poddar, learned DR appearing for the Revenue. After carefully considering the submissions of both the sides and after going through the impugned order, we find that the adjudic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve got no bearing on the value of the goods. The appellant have very clearly in their statement deposed that such course of action was taken by them to avoid sales tax, freight etc. Further, the import of the goods from the trader instead of manufacturer, could not be adopted as a ground for rejection of the invoice value. Revenue has also no where shown that the goods known in the market as 'telescopic channels' but are shown as drawer slides in description of the goods, is of such an importance, so as to change the nature of the goods and its value. It stands explained to us that the channels and drawer slides are always telescopic. Similarly, the value of the raw materials i.e. scrap cannot be adopted as a reason for rejecting the transa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n to the import of identical goods at Kolkata, at the same value as declared by the assessee. The adjudicating authority has examined the said Bill of Entries and has distinguished the same on minor technical grounds. The first ground adopted by the adjudicating authority is that detailed description of the goods in every Bill of Entry is not available and in the instant case, the goods had to be assessed on the basis of weight, such weight is not available in respect of goods imported at Kolkata. However, we find that the description given in every Bill of Entry is 'telescopic channel'. It is Revenue's own case that the goods in the present case are telescopic channels and drawers rather than the simple channels. If that be so, if telescop....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... -6 days for clearance; payments are received after the sale of goods and as such, amount is investigated for about three months, maintenance of office space, salaries, renting of godown and transit etc and in some case imported goods remain unsold for quite a long period and have to be offered for sale on heavy discounts, are the reasons for high expenses. As such, if 25% expenses are taken into account, and profit margin of 15% is considered, the backward calculation would arrive at the value more or less declared by them. The said plea of the assessee does not stand accepted by the adjudicating authority on the ground that they have not given any details supported by documentary evidence to substantiate their claim of 25% expenses and 1....