CENTURY LAMINATING CO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) In this writ petition, the impugned order dated 29-8-2006 of the Commissioner of Customs (Appeals) has been challenged, whereby directions were given to the petitioner to deposit the differential duty amounting to Rs. 10.00 lakhs by 14th September, 2006 and also submit the proof thereof on 15-9-2006.

(2.) The case of the petitioner is that it has imported 285 M.T. of phenol disclosing the price of the goods @ US $ 1085 per M.T. His further case is that once he has submitted all relevant documents and the genuineness of the documents is also not in doubt, whatever price it has shown be accepted for the purpose of levying customs duty.

(3.) The case of the Revenue is that when the petitioner has purchased the said goods, on the same day, similar goods have been purchased by one Overseas Polymers Pvt. Ltd. @ US $ 1350/- per M.T. and this shows that the goods imported by the petitioner were under-valued, therefore, this is a fit case wherein customs duty and penalty were required to be imposed by the Customs Authorities. The Revenue further submits that in view of the above, there is no case for exempting the petitioner from the pre-deposit of duty and there is nothing wrong with the directions of the Commissioner of Customs (Appeals) given in the impugned order. He further submits that under Rule 10 of Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 (for short 'the Rules'), when the authority has any doubt about pricing of the goods and in his opinion if there is any concealment in valuing the goods, the Authorities have power to value the goods as per the rate at which Overseas Polymers Pvt. Ltd. has imported the goods from the same seller/dealer abroad.