TaxTMI 
TaxTMI 
2020 (8) TMI 401
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....n payment of fine and further demand of differential duty alongwith penalty under Section 114A of the Act and further penalty of Rs. 50,000/- under Section 114AA on the appellant is correct, as confirmed by the impugned order in appeal. 2. Brief fact of the case are that based on intelligence, the goods imported vide Bill of Entry No. 2140432 dated 04.08.2015 filed by the appellant was subjected to detailed examination by the officer of the Customs Preventive Commissionerate, on the reasonable belief that the same were undervalued. On examination, goods containing (i) Silicone Weather Proofing Sealant (ii) Foamed Acrylic Tape and (iii) Tape were found. The quantity of goods was found as per the declaration, however, the length of the each ....
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....proof in support of the declared value, stated that the goods were purchased at the declared value but did not have any proof such as purchase order. 3. The importer vide letter dated 28.08.2015 submitted that there was a minor difference in length of 20 nos. of tapes, the consignment need not be detained. The provisional release of the consignment covered under Bill of Entry No. 2140432 dated 04.08.2015 was allowed by the competent authority under Section 110A of the Customs Act, 1962 with the conditions (i) 100% payment of differential duty amounting to Rs. 2,37,245/- (ii) furnishing of Bond for the entire value of the goods i.e. Rs. 11,58,275/- and (iii) furnishing of Bank Guarantee equal to 25% of the differential duty i.e. Rs. 59,311/....
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....Guangdong Oliva Chemical Industry which was giving a minimum rate of US$0.6/pc for the imported goods, as obtained from the internet. 6. Accordingly, the importer firm M/s Burberry International were issued a show cause notice proposing therein for rejection of the declared value; re-determination of assessable value at the lowest price obtained as per NIDB data; demanding differential duty; confiscation of imported goods/ imposition of redemption fine; imposition of penalty under Section 114A and Section 114AA of the Customs Act, 1962. 7. The appellant contested the show cause notice by filing reply and also appeared at the time of personal hearing. The appellant contended that as per para 10 of the show cause notice, admittedly silicon ....
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....52 per piece for bulk quantity manufactured in China. Thus, the Department have not given any basis for fixing the wholesale and retail margin. There is no proper scientific basis. Further, prices also vary as per the brand name. It was further urged that the Revenue adopting pick and choose method from the NIDB data relied upon, as they are ignoring the import price in respect of past Bill of Entry No. 9707166 dated 26.06.2015 and Bill of Entry No. 8648503 where value of 280 ml. and 300 ml Silicon Sealant has been accepted at Rs. 24/- per piece. Further, appellant contended that they are regular importers from M/s Olivia chemicals, China which is a ISO 9001 certified company. Thus, rejection of transaction value on the basis of one Sealant....
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....50,000/- (Rupees Fifty Thousand only). (iii) I confirm demand of differential duty of Rs. 2,37,245/- (Rupees Two Lakhs Thirty Seven Thousand Two Hundred forty Five only) under Section 28 of the Customs Act, 1962 and order recovery of the same from the importer along with interest under Section 28AA of the Act ibid. I appropriate the differential duty amount of Rs. 2,37,250/- already deposited by the party vide TR-6 challan No. 70711 dated 04.09.2015 at the time of provisional release of the goods against the above confirmed demand of the differential duty. (iv) I impose penalty of Rs. 2,37,245/- (Rupees Two Lakhs Thirty Seven Thousand Two Hundred forty Five only) under Section 114A of the Customs Act, 1962 and Rs. 50,000/- (Rupees Fifty....
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..... The adjudicating authority have compared the price of the product under import 'Silicon sealant' is as follows:- Description of goods CIF Ass. value Duty cum price Post importation charges (5%) Price including importer margin (15%) Price Including wholesaler margin (10%) Price including retailer margin (30%) Silicon sealant Black/ Clear 0.52 33.665 44 46 53 58 75 Further contemporaneous import price (NIDB data) of silicon adhesives at various ports in India (particularly at ICD, TKD, New Delhi) of same specification, from same place of origin, with almost same level of import and imported during the same period of time was shown to Sh. Sameet Mittal, prop. of M/s Burberry International (also supplied as RU....