COMMR. OF CUSTOMS (IMPORT) Vs. LOREX INTERNATIONAL

JUDGEMENT

(1.) Heard the learned S.D.R. The respondents were not present. We have considered the case records and the submissions made. The original authority has enhanced the declared value from US 1.75 to US 3.75 under Rule 8 of the Customs Valuation Rules, 1988 after rejecting the declared value under Rule 10A. His finds are as under : - The Department conducted further market inquiry in the matter of value of SD Terminator Game (TV Game). The value represented by Cash Memo No. 189, dated 23 -1 -2001 of M/s. A to Z Trading, New Crawford Market, Mumbai, is Rs. 405 per piece. Similarly, the value of the SD (Terminator) Game represented by cash memo dated 23 -1 -2001 of M/s. Narendra Paper Market is Rs. 425 per piece. It has been noticed that there are wide fluctuations in the market piece, which may have been influenced by the factors like dumping of old stock of goods or goods under clearance sale. Under the circumstances, the value declared by the importers appeared to be low. The Department has also noticed the import of identical goods namely "Terminator 8 Bit SD -Game" of Chinese origin with a CIF value of US 2.50 per piece in Bill of Entry No. 7170, dated 30 -11 -2000. This value was also enhanced to US 3.75 per piece following the market inquiries. In this case too, the importers willingly paid the duty on the enhanced value. Also the import of similar goods with the description as TV game - 8 bit and having the same usage of Chinese origin was noticed at Mumbai. The consignment was imported by M/s. Media Industries at US 4 per piece and was released under cover of Bill of Entry No. 3278, dated 15 -11 -2000. Again in the Bill of Entry No. 197, dated 2 -1 -2001 - Rotation No. 8358/240, dated 30 -12 -2000, imported by M/s. Y2K Enterprises, Mumbra has been noticed by the Custom House in which identical goods have been valued at US 2.25 per piece which were also enhanced by the Department to US 3.75 per piece. The importer accepted the enhanced value willingly without any protest. In as much as the quantity, supplier and place of export in the Bill of Entry No. 197, dated 2 -1 -2001 is on par with the impugned Bill of Entry, the value taken for the purpose of the assessment based on US 3.75 per piece is deemed fair. This further strengthens Department's case for rejection of declared CIF value of US 1.75 per piece under Rule 10(a) of Customs Valuation (Determination of the imported goods) Rules, 1988. In as much as the importer has been granted Personal Hearing on waiver of show cause notice and that no further information or other evidence has been submitted explaining the difference in invoice prices of M/s. Tarbez Electronics Trading Co., Dubai, UAE with respect to the impugned Bill of Entry and Bill of Entry No. 197, dated 2 -1 -2001, it is deemed that the value of the impugned goods cannot be determined under Rule 4(1) ibid. The ratio of the Hon'ble Supreme Court judgment in case of Etcher Tractors Ltd. v. Commissioner of Customs, Mumbai is not applicable in this case as the facts and circumstances are totally different. In the present case, the importer has not claimed or established any special circumstances for lower invoice price.

(2.) The lower appellate authority has set aside the original order, hence this appeal by Revenue.

(3.) The learned S.D.R. has cited the following 3 decisions of the Tribunal in support of Revenue's case : -