2004 (10) TMI 221

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....Singapore dealer M/s. Hong Seh Motors Pte Ltd. As the customs doubted the value, the vehicle was not released pending investigation. However the appellant approached the Kerala High Court by filing a writ petition and the Hon'ble High Court ordered that the Department should complete the adjudication within a week. Accordingly the Assistant Commissioner of Cochin in his assessment Order No. 47/02 dated 12-8-2002, on the basis of Parker's guide enhanced the value of vehicle from US $ 70,000 to UK Stg PDS 80,07,659 after deduction of 15% discount and Vat of 16%. The appellants paid the duty on the enhanced value and the car was released as per the court's order. In the meantime, the department conducted investigation which revealed that the m....

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....the appeals against the order of the Commissioner of Customs (Appeals) as well as Order of the Commissioner of Customs, Cochin. In this Order three issues have to be decided. (1)     The valuation of the car (2)     Confiscability of the car (3)     Imposition of fine and penalty. 3. As regards the value of the imported car, normally under the Customs Law the transaction value with adjustment in accordance with provisions of Rule 9 of the Customs Valuation Rules, 1988 is to be accepted for assessment purposes. There are certain situations where the transaction value will not be accepted by the Customs as per Rule 4(2) of the Customs Valuation Rules, 1988. As per Rule 4(....

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....also upheld by the Supreme Court [2002 (141) E.L.T. A191 (S.C.)]. At that time, the valuation provisions of Rule 4(2)(a) which we have quoted above did not exist. Therefore, the case law cited by the learned advocate will not be applicable in this case. Under these circumstances, we uphold the Order-in-Appeal as regards the value of the car. 4. Shri P.M. Saleem, the learned SDR contended that this is clear case of misdeclaration as no one will sell custom made car for US$ 70,000 when the real price is US$ 1,07,395/-. Hence, according to him, the confiscation of the car and penalty/fine are to be upheld. The department has written to the Singapore dealer regarding the amount received by him from the appellant for the car and he had confir....