B.K. ENTERPRISES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This appeal has been filed against the order in original dated 3.4.2002 passed by the Commissioner of Customs, ICD, Tughlakabad. The appellants imported several components of VCD players each in the quantity of 3200 sets/pieces. The Department issued a show cause notice dated 11.12.2001 proposing enhancement of value for the following three items:

(2.) The goods in question were imported from a Trading Company in Hongkong but were claimed to be made in China. However, Model No., Part No., Manufacturer's Name and specification etc. were not mentioned. In his order dated 3.4.2002, the learned Commissioner has confirmed the valuation proposed for the first two items but for the third item, namely R/F, he has approved assessment at Rs. 14.48 as against the proposed assessable value of Rs. 33.61. He also confiscated the goods in question but allowed redemption on payment of Rs. 5 lakhs as fine and imposed penalty of Rs. 1 lakh.

(3.) The learned Advocate for the appellants seeks that the order be set aside and the goods released on declared value. The learned Advocate argues that the very same components had been cleared at much lower prices in other Custom Houses such as Calcutta and as per the Customs Valuation Rules, the lowest value noticed for identical/similar goods, at any port be adopted rather than adopting the value noticed at ICD, Tughlakabad. She also states that there is no challenge in the show cause notice or in the order that any extra amount has been paid to the suppliers and therefore, the declared value should have been accepted. She further argues that since there is no evidence of any under hand payment, there is no justification for confiscation of goods and imposition of fine and penalty.