H.M. LEISURE Vs. COMMISSIONER OF CUSTOMS, BANGALORE

JUDGEMENT

(1.) THE appellant filed a Bill of Entry No. 3259/18 -9 -2001 for clearance of 68 units of video games, as detailed in the Invoice No. HM 30701/01 dated 2 -8 -2001. It was observed that no split -up value was given in respect of each of the items and all the video games were valued at USD 10156/ -, as per the above invoice; since no mention was made in the description in the Bill of Entry as to whether the imported video games were new or old/used, the same were ordered for first check with specific instruction to examine the goods whether they were old/used or new. From the examination report it appeared that, out of the 5% goods ordered for examination, few goods looked new and the others used. It was further alleged that the appellant submitted a revised invoice wherein the split -up value in respect of each item was shown and the average value per unit worked out to USD 149.35 i.e. Rs. 7206/ - approximately. As the items imported were in the nature of consumer durables and were highly prone for under -invoicing, market enquiries were made, which revealed that the value for similar goods stood in the range of Rs. 20,000/ - to Rs. 30,000/ - and hence on the reasonable belief that the goods were undervalued, the appellants were called upon to have the goods valued by an independent Chartered Engineer in order to ascertain the correct value. The Chartered Engineer, made a detailed study of the video games and furnished his report, he opined the machines are about 6 years old and that the expected balance technical life was estimated to be about 15 years with timely and proper maintenance. He subsequently arrived at a revised value of Rs. 14.91 lakhs after allowing admissible deductions, whereas the declared value was Rs. 5,82,474/ - CIF. Thereby the goods appeared to have been undervalued by more than twice. Since the age of the machines was found to be less than 10 years, there was no violation of licensing. In terms of Para 5.3 of the Exim Policy 1997 -2002 read with Para 5.4 of the Handbook of Procedures, Vol. 1. The appellant vide letter dated 19 -10 -2001 waived the show cause notice and sought a personal hearing.

(2.) THE Collector held/ found, in brief, as follows : -

(3.) BEING aggrieved by the said order, the appellant have preferred this appeal on the following grounds : -