RAM MOHAN AND SONS Vs. CC

JUDGEMENT

(1.) The issue raised in all these appeals is common. Accordingly they were taken up for hearing together and are disposed of under this common order.

(2.) The appellants declared the goods in imported consignments as "completely pre -mutilated and fumigated old woollen rags "pre -mutilated and fumigated old woollen rags" "completely pre -mutilated synthetic rags" pre -mutilated rags etc. When the consignments were examined, it was observed that they consisted of old and used garments of various types/sizes/nature. The items were jackets/wind cheaters, coats, trousers, tops, shirts, baby garments etc. There was also variation found with regard to weight. Proceedings were, therefore initiated proposing confiscation of the goods for misdeclaration of description and value. These proceedings ended in the passing of the impugned order. The Adjudicating authorities confiscated the goods and allowed their redemption on payment of fine and penalty. Values were also enhanced for the purposes of assessing to Customs duty. The present appeals challenge those orders.

(3.) The contention of the appellants is that they had ordered pre -mutilated woollen/synthetic rags and their foreign suppliers sent the consignments in question. It is being contended that there was no misdeclaration of the goods inasmuch as, in the supplier countries, all used garments are treated as rags. It is also being contended that the Customs authorities were not justified in enhancing the values for the purposes of assessment since the declared values were the transaction prices and declaration of a transaction price as the value of the imported goods cannot be treated as misdeclaration. It is also being pointed out that basis for enhancement of value has not been disclosed.