TaxTMI 
TaxTMI 
2026 (6) TMI 849
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....f about 2,35,000 kgs. of 'embroidery threads' from China. For the purpose of such imports, the appellants had filed 27 Bills of Entry (B/Es) declaring the classification of goods under Customs Tariff Item (CTI) 5403 4190 with jurisdictional Customs Commissionerate/Custom House, at JNCH, Nhava Sheva and Chennai seaports, seeking clearance of goods from Customs authorities at the port of import. Upon payment of customs duty on the basis of declared value, the goods were cleared for home consumption. 2.2 On the basis of intelligence gathered by Directorate of Revenue Intelligence, Ahmedabad Zonal Unit (DRI) indicating that the appellants importer is indulging in evasion of customs duty by resorting to undervaluation of the imported goods through suppression of the actual value of goods in the commercial invoice and paying the differential value of goods to the overseas supplier through illegal means, details were called for by issue of summons. During the investigation by DRI, Shri Anil Mathuradas Chopra, Director in deposing his voluntary statement dated 19.12.2006, had elaborated the modus operandi, produced additional invoices for the differential amount paid to the overseas sup....
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....ner of Customs, Calcutta Vs. South Indian Television (P) Ltd. - 2007 (214) ELT 3 (S.C.). Therefore, he submitted that adjudged demands cannot survive without such evidence and he pleaded that the appeal filed by them may be allowed. 4. Learned Authorised Representative (AR) reiterated the findings made by the Commissioner of Customs (Appeals) in the impugned order and submitted that issue of valuation of impugned goods, has been examined by the authorities below based on invoices produced for the difference in value which was paid back through illegal channels and the voluntary statement given by the Director of the company. Thus, learned AR justified the action in the impugned order, for demand of duty and for subjecting the goods to confiscation and for imposition of penalties on appellants. 5. We have heard both the learned Advocate appearing for the appellants and the learned Authorized Representative of the Department and perused the case records along with the additional submissions made by both sides in the form of written submissions. 6. The following issues arise for determination before the Tribunal: (i) whether the impugned order by upholding of duty de....
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.... towards the differential duty which were deposited by DRI vide various challans into the Government exchequer. 8.2 In terms of the legal provisions under the Customs Act, 1962, determination of the duty liability of imported goods including inter alia in arriving at the appropriate valuation of such imported goods are carried out in accordance with the provisions of Section 14 ibid and Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 framed thereunder. These are extracted for convenience of reference and given below: Section 12. Dutiable goods. - (1) Except as otherwise provided in this Act, or any other law for the time being in force, duties of customs shall be levied at such rates as may be specified under the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force, on goods imported into, or exported from, India. Section 14. Valuation of goods for purposes of assessment. - (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975) or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such good....
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....able them to perform the same functions and to be commercially interchangeable with the goods being valued having regard to the quality, reputation and the existence of trade mark; (ii) produced in the country in which the goods being valued were produced; and (iii) produced by the same person who produced the goods being valued, or where no such goods are available, goods produced by a different person, but shall not include imported goods where engineering, development work, art work, design work, plan or sketch undertaken in India were completed directly or indirectly by the buyer on these imported goods free of charge or at a reduced cost for use in connection with the production and sale for export of these imported goods; (f) "transaction value" means the value determined in accordance with Rule 4 of these rules. 3. Determination of the method of valuation - For the purpose of these rules, - (i) the value of imported goods shall be the transaction value; (ii) if the value cannot be determined under the provisions of Clause (i) above, the value shall be determined by proceeding sequentially through Rules 5 to 8 of ....
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....62 (52 of 1962) and on the basis of data available in India. (2) No value shall be determined under the provisions of these rules on the basis of - (i) the selling price in India of the goods produced in India; xxx xxx xxx xxx Cost of services. Rule 9. (1) In determining the transaction value, there shall be added to the price actually paid or payable for the imported goods, - (a) the following cost and services, to the extent they are incurred by the buyer but are not included in the price actually paid or payable for the imported goods, namely :- (i) commissions and brokerage, except buying commissions; (ii) the cost of containers which are treated as being one for customs purposes with the goods in question; (iii) the cost of packing whether for labour or materials; (b) the value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of imported goods, to the extent that such value has not been included in the price actually paid or pay....
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....redients of collusion or wilful mis-statement or suppression of facts by the appellants with an intent to evade duty. On perusal of the case records, it transpires that in respect of 27 consignments of imported goods, the appellants had paid customs duty at the time of its import before clearance from customs control on different dates for the part value of the imported goods, as declared in the B/E and in the invoice routed through the banking channel. However, in respect of the part value of such consignments, for which additional invoices/supplementary invoices were produced by the Director of the appellant company Shri Anil Mathuradas Chopra, no customs duty had been discharged. It is not the case of the appellant that the department had recovered these additional invoices and such recovery of evidences are not proper in terms of Section 138C of the Act of 1962. Further, the appellant had disputed the method of valuation of goods to state that the value of identical or similar goods have not been produced by the department. However, since the authorities below have examined the evidences and on the basis of actual price/value of imported goods paid by the appellants had accepte....