TaxTMI 
TaxTMI 
2004 (7) TMI 182
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....declared them as load speakers) of three models, declared on uniform price of US $ 9 per pair totally valued at US $ 14,391 CIF and filed a bill of entry for their clearance. They were assessed to duty enhancing the value from US $ 9 to US $ 11.60 per pair in respect of one model, US $ 9 to 11.74 per pair in respect of another and US $ 9 to 11.81 per pair in respect of the third one. This revision of value is in accordance with a formula invented by the Commissioner of Customs, Mumbai. The formula is contained in a letter dt. 11-1-2003 by the Commissioner addressed to the Chief Commissioner. We append the letter to this order so that we don't have to reproduce its contents here. After the bill of entry was assessed the goods were examined by the shed appraiser in the presence of officers of C.I.U. Such an examination resulted in the discovery that the consignment consisted of three different models, of three different sizes and wattage. The model numbers are TS-A 6955, TS-A6985 and TS-A6995. The invoice doesn't speak of any 'TS' though. The goods were seized on the ground that the importers mis-declared the value and material particulars. The goods were imported from a trader in Du....
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....the same norms as stated in the letter should be adopted in the case of the appellants before them. The present appellants are put to a dis-advantage vis-a-vis other importers when a different norm is applied to their goods. The case of Techno Marketing v. CCE, Calcutta, Order No. 640/03 dt. 18-11-2003 [2004 (164) E.L.T. 113 (T)] was relied upon. (c) The Commissioner erred in discarding the transaction value relying on some prices quoted in some obscure quotations engineered by the investigating officers themselves (S/Shri Sharma and Colaco). The case of Overseas International v. CCE, Chennai [2001 (127) E.L.T. 599 (T) = 2000 (41) RLT 101 (Tr.)] is relied upon to agree that quotations cannot overrule the prices shown in the invoice. (d) Reliance on prices exhibited in the internet is erroneous. Aggarwal Distributors Pvt. Ltd. v. CCE, New Delhi [2000 (117) E.L.T. 49 (Tri.)] was relied upon. (e) Cross examination of Shri Sharma and Shri Colaco was not allowed resulting in gross violation of principles of natural justice. (f) Burden of proving under-valua....
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....thematical precision when transaction is veiled in secrecy. In the present case the prices declared are veiled in secrecy as the importer failed to disclose the actual value of each of the models of speakers, a fact which is known to him alone. 12. He cited the case of Pan Asia Enterprises v. CCE, [1995 (79) E.L.T. 322 (Tri.) which is later upheld by the Supreme Court [1997 (94) E.L.T. A59 (S.C.)] and argued that when the imported goods were not supplied by the manufacturer and when the investigation revealed that higher prices were indicated in quotations, declared value could be rejected. 13. He argued that when goods of various models were imported but uniform price for all the models declared irrespective of model and combination without any details, invoice price is not acceptable. In support of this contention he relied upon the case of Maya Enterprises v. CCE, Kandla [1994 (71) E.L.T. 817 (Tri.)]. In the present case the three models of speakers have different specifications but an uniform price is declared. Once the declared value is rejected on this ground the department can determine the assessable value on the basis of evidence, under Rule 8 of the Valuation Rules,....
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..../2003-NBA, dt. 18-11-2003 [2004 (164) E.L.T. 113 (T)] in which the Bench while allowing the appeal observed, we quote "Since the value indicated in this letter (letter dt. 11-1-2003) of the Commissioner of Customs, Mumbai has been arrived at after considering the prices observed in the trade as well as from other sources and the prices are also indicated size-wise and brand-wise, the prices indicated in the circular should commend itself for adoption in cases of doubt". We have perused the said letter. The letter further reads thus "However, if evidence of higher price is noticed or provided by agencies the aforementioned floor price (emphasis provided) will be revised". In the present case evidence of higher prices is gathered by the agency (CIU). The letter cited supra provides for revision/determination of price in case of fresh evidence indicating higher prices for car speakers. What the Commissioner did was exactly this. Again, we are not aware whether the imported goods in the case before the Delhi Bench are identical with the ones we are concerned with. Valuation Rules themselves do not provide for any floor prices that could be adopted while determining the value of importe....
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....he Commissioner has rightly rejected the invoice value. The appellants do not seem to have any grouse on rejection of the declared price but seem to contest such revision because the prices ultimately determined were not in accordance with norms prescribed in the letter. We observe that the department is not bound to go by the letter and sprit of the Commissioner's letter while determining the value of imported goods. This is particularly so when the department decided to reopen the cases of similar goods cleared in the past. 22. Rejection of the declared price is one thing determination of value is another. It is therefore necessary to see whether the Commissioner re-determined the value of the impugned goods in accordance with the valuation rules. We proceed to do so. 23. The evidence suggesting that the speakers command a much higher price than what is declared by the appellants is in the form of quotations, and prices indicated to the internet. The prices indicated both in the website and the quotations are wholesale prices. A lot of arguments were advanced against acceptance of the prices indicated in the quotations. It appears that the quotations themselves, though were....
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....he export price of ball point pens would scare away any decent students) and the prices of imported goods tend to be abysmally low. No wonder then, that nobody imported the speakers declaring the real value during the period in question. And the letter of the Commissioner referred to earlier has not exactly served the cause of finding out the real value of the speakers. A few more of such letters would permanently discourage the importers from declaring the real value of the goods. 27. We have also considered the argument that just as a single Swallow does not make a summer, a single quotation or a couple of them cannot form the basis for rejecting a declared price. We could have agreed with that preposition but for the fact that in the present case the Commissioner relied on not a just of couple of quotations but also on the internet prices, distributor prices etc. to reject the declared price. We feel that it is perfectly in order to do so. We do not find any infirmity in so far as the revision of the value. 28. We observe that the adjudicating officers do not normally confiscate the goods and impose penalties on the importers while rejecting the transaction value. In the p....