UNITED BUSINESS MACHINES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Common issue is involved in these appeals, therefore, they are being taken up together.

(2.) The appellants made import of old and used main frame assemblies of photocopier. The appellant filed Bills of Entry. The declared value was not accepted by the Revenue and on the basis of Chartered Engineer Certificate, the value of the goods was enhanced and goods were also confiscated on the ground that the import was made in violation of the Exim Policy as old and used parts of machines requires Special Import Licence.

(3.) The appellants are not contesting the confiscation of the goods in violation to the Exim Policy, therefore, the confiscation of the goods under Section 111(d) of Customs Act is upheld. ORDER 4. In respect of enhancement of value of the imported goods, the contention of the appellant is that the appellant also produced a Chartered Engineer Certificate in respect of the goods in question and as per the Chartered Engineer Certificate, the value of the goods is same as mentioned in the invoice of the goods. The contention is that in the Chartered Engineer's certificate, it is admitted that these are old and used parts of photocopier and cannot form complete photo copy machine and do not have functional characteristic. The year of manufacture is not available on any of the main frame assembly and these main assemblies are 5 to 6 years old. The contention is that there is no evidence on record to show that the appellant had paid over and above the invoice value. The appellant relied upon the decision of the Tribunal in the case of National Imaging System v. C.C. in Final Order Nos. 156 -157/04, dated 25 -2 -2004 and in the case of Pallavanchal & Merchandiser's Firm, Final Order No. 1087/04, dated 20 -8 -04 [2004 (174) E.L.T. 98 (T)]. 5. The contention of the Revenue is that the value was enhanced on the basis of Chartered Engineer Certificate and as per the Chartered Engineer Certificate, the parts of photocopier are in condition have residual life approximately of years. 6. We find that in this case the Revenue is relying upon the Chartered Engineer certificate for enhancing the value of the imported goods. In this certificate it is admitted goods in question are old and used and no year of manufacture is mentioned on the goods. Further we find that there is no allegation that there is any special relationship between the exporter and the appellant which prove the fact that value was suppressed to evade payment of duty. In similar circumstances, the Tribunal in the decision relied upon by the appellant set aside the enhancement of the value on the basis of Chartered Engineer certificate in respect of old and used goods. In view of the above decision of the Tribunal and in view of the fact that there is no evidence on record to show that there was extra consideration over and above the value mentioned in the invoice, the enhancement in respect of value of imported goods is set aside. As we held the goods were liable for confiscation in violation of the Exim Policy/ the Order of confiscation is upheld. However, the redemption fine is reduced to Rs. 1,50,000/ - and penalty is reduced to Rs. 25,000/ - in each case. The appeals are disposed of as indicated above.