TaxTMI 
TaxTMI 
2017 (10) TMI 468
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.... of "Mix Stock Lot of Alcoholic Beverages". The imports were from Dubai. Based on some alleged intelligence that the goods were grossly undervalued, the two consignments were first detained and later seized by the Department. During the investigations, statements of Shri Vijay Gupta, MD, of the appellant company, and of Shri Kumar Sheel, Customs Appraiser, were also recorded. The seized goods were provisionally released on 07.07.2014 for into bond warehousing on execution of bond and bank guarantee. At the time of periodical ex-bonding of the goods the department compelled the appellants to pay the differential duty. The Department relied on bills of entry of contemporaneous imports and issued show cause notice dated 17.10.2014 demanding di....
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....put up a proper defence before the adjudicating authority. ii) The declared value has been rejected only on the basis of suspicion. The transaction value can be rejected only if the conditions mentioned in rule 12 of the Customs Valuation Rules 2007 are satisfied. In the present case no valid reasons have been given for rejection of transaction value. iii) The imported goods have been declared as "Mix Stock lot of alcoholic beverages". These goods were in small quantities of different assorted brands, labels were damaged, belonging to old stock etc. Hence values of such stock lot goods cannot be compared with normal imports. These goods were meant for sale in UAE, but have been diverted to India as "parallel imports" at discounted pri....
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....ved by the Assistant Commissioner. 9. The Adjudicating authority has held that the Appraiser has failed to get the description of goods declared by the importer verified before assessing the goods, but the ld. Counsel submitted that as per the Customs Appraising Manual, imported goods are normally to be assessed on Second Appraisement System. In any case, at the time of examination of the goods at the time of ex-bond clearance, no discrepancy in respect of description or quantity was noticed. Accordingly, it has been submitted that the penalty imposed on the Appraiser may be set aside. 10. The ld. DR justified the impugned order. He argued that various types of liquor have been imported at extremely low prices and hence these values h....
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....ows: "Reading Rule 3(i) and Rule 4(1) together, it is clear that a mandate has been cast on the authorities to accept the price actually paid or payable for the goods in respect of the goods under assessment as the transaction value. But the mandate is not invariable and is subject to certain exceptions specified in Rule 4(2) namely : (a) there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which (i) are imposed or required by law or by the public authorities in India; or (ii) limit the geographical area in which the goods may be resold; or (iii) do not substantially affect the value of the goods; (b) the sale or price is not subject to same ....
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....entry cover a heterogeneous mix of various types of alcoholic beverages with different brand names. It has also been submitted that these belong to old stock, labels were damaged, packaging indicates that it is meant for sale in UAE market, etc. Such goods are "stock cleared" and sold to the importer as "parallel imports" at discounted prices. Hence we are of the view that the value of such goods cannot be compared with the values declared for individual import consignments of prime branded liquor consequently. We set aside the enhancement of value of goods imported vide the two bills of entry. We also set aside the confiscation of imported goods on the charge of mis declaration of value. 16. The statement given by the Customs Appraiser ....