G.B. ENTERPRISES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE issue in dispute is two fold:

(2.) WE have heard both sides. We find that it is not the case of the department that none of the exemptions contained in the proviso under Sub -rule (2) of Rule 4 of the Customs (Valuation) Rules, 1988 applied to the goods under consideration, which were of various manufacturers and shipped from a supplier at Dubai. The only reason contained in the impugned order for rejecting the transaction value is that it appeared too low to the assessing officers (who have considerable market experience, awareness and expertise in assessment.) The case is squarely covered in favour of the importers by the Apex Court decision in the case of Eicher Tractors Ltd v. Commissioner , which has held that, transaction value has to be accepted, unless any of the exceptions contained in the proviso to Sub -rule (2) of Rule 4 of Customs (Valuation) Rules, 1988 are applicable. Since none of those exceptions have been shown to apply in the present case, the transaction value is required to be accepted. We therefore hold that no case for enhancement of value has been made out by Revenue against the importers.

(3.) AS regards the requirement of licence for valid import of the goods, we find that this aspect in the impugned order has not been seriously challenged by the importers. Having regard to the totality of the facts and circumstances of the case, we uphold the confiscation, but reduce the redemption fine from Rs 4.00 lakhs each to Rs 1.00 lakh (Rupees One lakh only) each and from Rs 35,000/ - to Rs 15,000 (Rupees Fifteen thousand only). The penalty imposed on the importers is also reduced from Rs 3.00 lakhs to Rs 1.00 lakh (Rupees One lakh only).