ALFA TRADERS Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THIS appeal has been filed against the Order -in -Original No. 08/2006, dated 17/20 -3 -2006 passed by the Commissioner of Customs, Cochin.

(2.) THE appellants imported Cloves from Pakistan under two Bills of Entry claiming concessional assessment under SAARC Preferential Trading Agreement (SAPTA) Notification No. 105/99. The country of Origin, as per the Certificate of Origin, is Pakistan. Since Pakistan does not produce Cloves, investigations were carried out. The Commissioner referred the matter to the Spices Board for confirmation as to whether Pakistan is known to have Clove production and export. The Spices Board referred the matter to the Indian High Commission in Islamabad. After local enquiries, the High Commission found that Cloves are not grown in Pakistan. The first consignment was cleared provisionally after the execution of a Bank Guarantee for 10% differential duty. As regards the second consignment, in view of the order of the Honble High Court of Kerala, the same was released on payment of Customs duty at 7% and also execution of Bank Guarantee for the rest of the amount. As the value declared by the importer was low, the value was enhanced on the basis of the contemporaneous import price and the goods were released provisionally. As the Kerala High Court had given a deadline for deciding the issue, a Show Cause Notice was issued to the appellants. The Commissioner, in the impugned order, held that the appellants are not entitled for the benefit of the concessional duty under Notification No. 105/99. Further, in respect of the consignment imported on 19 -5 -2004, the Transaction Value was rejected in terms of Rule 10A of the Customs Valuation Rules, 1988 and the value of Rs. 117.75 per kg as ascertained from NIDB, being the contemporaneous import price was taken for assessment purpose. The appellants are highly aggrieved over the impugned order. Hence, they have come before this Tribunal for relief.

(3.) SHRI S. Murugappan, the learned Advocate, appeared on behalf of the appellants and Shri Anil Kumar, the learned JDR, for the Revenue.