COMMISSIONER OF CUSTOMS Vs. PIONEER IMPEX

JUDGEMENT

(1.) The Respondent herein is engaged in the business of import and during the course of business, on 2-7-2002 it entered into an agreement with one Galaxy Enterprises, Hong Kong, for import of plastic body, plastic lens camera at a unit price of US $ at 0.41. Pursuant to the said agreement Galaxy Enterprises dispatched the consignment of 750 cartons containing 30,000 pieces of the said cameras of China. In the Bill of Entry filed on 13-8-2002 the Respondent had cleared the aforesaid import it declared the unit price of US $ 0.41. The consignment was, however, detained by the Customs Officers on 14-8-2002. Investigation was carried out which resulted in issuance of show cause notice dated 8-11-2002. In the said notice it was mentioned that the price for unit declared as US $ 0.41 was wrong and the actual price was US $ 1.50. This price was stated on the basis of another import of the allegedly of the same goods effected by one M/s. SKP Trade Link. The Respondent replied to the same. This show cause notice culminated adjudication order dated 13-1-2004 whereby the goods in question were confiscated by the Commissioner. He, however, gave the option to the Respondent to get the goods released in terms of by giving bank guarantee of Rs. 10 lakhs and also for payment of differential duty amounting to Rs. 11,57,209/-.

(2.) The transaction value as declared by the Respondent was rejected on the ground that importer failed to produce the manufacturer's invoice and also that the price was fixed on contemporaneous import made by another firm during the relevant period, as mentioned above.

(3.) Aggrieved by this order, the Respondent filed an appeal before the CESTAT which has allowed the appeal vide impugned judgment.