VIJAY LEATHER STORES Vs. COMMISSIONER OF CUSTOMS, VISAKHAPATNAM

JUDGEMENT

(1.) THESE appeals have been filed against Orders -in -Original Nos. 7 & 8/03, dated 31 -7 -03 passed by the Commissioner of Customs, Visakhapatnam. Both the orders relate to valuation of imported PU leather cloth and also their entitlement for the benefit of Notification No. 20/99 -Cus., dated 28 -2 -99. The appellants imported PU leather cloth through Visak port. The unit price declared was 0.90 US$ 0.90 US$ was the concessional rate of duty claimed under Sl. No. 110 List 3A of Notification No. 20/99 -Cus., dated 28 -2 -99 which exempted insoles and mid -soles or sheets if they are imported for use in leather industry and such exemption is restricted to actual users of goods. According to Revenue, there was mis -declaration of value and description of the goods. In Calcutta Customs House, M/s. Bharath Leather Company imported PU leather cloth of Taiwanese origin on 6 -5 -99 and value accepted for purpose of assessment was US$ 2.00 per meter CIF. It was also felt that the impugned item is not exclusively to be used for insole and mid -sole in leather industry. Further, the appellants were found to be traders and not actual users. Therefore, the revenue proceeded against the appellants by issue of show cause notice. The adjudicating authority determined the value of the impugned goods at US$ 2.00 per meter and demanded differential duty. Further penalties were also imposed. The appellants appealed to CEGAT Bangalore Bench and matter was remanded to the Commissioner for de novo decision after giving an opportunity to the appellants for personal hearing. Consequently, the Commissioner took up the matter for de novo adjudication and passed the impugned order. In the de novo order, the Commissioner has fixed the value at US$ 2.00 per meter. He has also given a finding that the importers are not entitled for the benefit of the Notification No. 20/99. The goods were held liable for confiscation but they were not available for confiscation as they had already been released. Penalty of Rs. 2 lakhs on M/s. D.S. Impex and Rs. 5 lakhs on M/s. Vijay Leather Stores were imposed under Section 112(a) of the Customs Act, 1962. The appellants strongly challenged the findings of the adjudicating authority.

(2.) SHRI Ramesh Ananthan learned Advocate appeared for the appellants and urged the following points :

(3.) THE learned SDR Shri K.S. Sambi Reddy urged the following points :