TaxTMI 
TaxTMI 
2020 (2) TMI 966
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.... Shri Vinay P. Karve, Director. The show cause notice was adjudicated Commissioner of Customs, Import (I) vide order 31/2015 dated 22.05.2015 wherein the allegations leveled in the show cause notice were confirmed; learned Commissioner imposed a penalty of Rs. 10,00,000/- and Rs. 15,00,000/- respectively under Section 112 (a) and Section 114A of Customs Act, 1962 on Shri Manivannan, Vice president of M/s. Afcon Infrastructure Ltd. and on Shri Vinay P. Karve, Director of M/s. Mydream Properties Pvt. Ltd. Hence, these three appeals are filed by the respective appellants. 2. Learned counsel for the appellants submits that they have negotiated with Benetti SpA of Italy ( the supplier) for purchasing the motor yacht of model "Azimut 68 Evolution"; the initial price quoted was Euros 24,10,300/-. However lastly it was agreed upon at Euros 14,00,000/- In the purchase order the letter "E" came to be missed and it was mentioned as Azimut 68 only; the same mistake got carried forward in other documents and Bill of Entry. However appellants have submitted along with Bill of Entry documents like owner's manual, builder's certificate and EC type examination certificate issued by Royal Institu....
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....it to remand the matter back to the Original Authorities for appreciating the evidence and to determine if there was any mis declaration and if so it was with an intend to avoid payment of duty or it was a clerical / typographical error. 5. Learned counsel further submits that it was incorrect to determine the value of the goods under Rule 3 (1). To have a better appreciation it will of use to go through the provisions of the rules. RULE 12. Rejection of declared Value.- (1) When the proper officer has reason to doubt the truth or accuracy of the value declared in relation to any imported goods, he may ask importer of such goods to furnish further information including documents or other evidence and if, after receiving such further information, or in the absence of a response of such importer, the proper officer still has reasonable doubt about the truth or accuracy of the value so declared, it shall be deemed that the transaction value of such imported goods cannot be determined under the provisions of sub-rule 3. 2. At the request of an importer, the proper officer, shall intimate the importer in writing the grounds for doubting the truth or accuracy of the ....
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....dition or consideration for which a value cannot be determined in respect of the goods being valued; (c) no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provisions of rule 10 of these rules; and (d) the buyer and seller are not related, or where the buyer and seller are related, that transaction value is acceptable for customs purposes under the provisions of sub-rule (3) below. (3) (a) Where the buyer and seller are related the transaction value shall be accepted provided that the examination of the circumstances of the sale of the imported goods indicate that the relationship did not influence the price. (b) In a sale between related persons, the transaction value shall be accepted, whenever the importer demonstrates that the declared value of the goods being valued, closely approximates to one of the following values ascertained at or about the same time. (i) the transaction value of the identical goods, or similar goods, in sale to unrelated buyers in India; (ii) th....
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....e3ds of any subsequent resale, disposal or use of the imported goods that accrues, directly or indirectly, to the seller; (e) all other payments actually made or to be made as a condition of sale of the imported goods, by the buyer to the seller, or by the buyer to a third party to satisfy an obligation of the seller to the extent that such payments are not included in the price actually paid or payable. Explanation:- Where the royalty, licence fee or any other payment for a process, whether patented or otherwise, is includible referred to in clauses (c ) and (e), such charges shall be added to the price actually paid or payable to the imported goods, notwithstanding the fact that such goods may be subjected to the said process after importation of such goods. ^1 (2) For the purpose of sub-section (1) 14 of the customs Act, 1962(52 of 1962) and these rules , the value of the imported goods shall be the value of such goods, and shall include- (a) the cost of transport, loading, unloading and handling charges associated with the delivery of the imported goods to the place of importation; (b) the cost of insurance to the place of importatio....