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COMP-U-MAX v/s Commissioner of Customs (Seaport) Chennai


Company & Directors' Information:- MAX INDIA LIMITED [Active] CIN = L85100PB2015PLC039155

Company & Directors' Information:- MAX INDIA LIMITED [Active] CIN = U85100PB2015PLC039155

Company & Directors' Information:- MAX CORPORATION LIMITED [Amalgamated] CIN = U24231PB1996PLC018766

Company & Directors' Information:- MAX INDIA LTD [Amalgamated] CIN = U24232PB1982PLC004841

Company & Directors' Information:- P G MAX PRIVATE LIMITED [Strike Off] CIN = U22219KL2012PTC031856

Company & Directors' Information:- MAX I. LIMITED [Active] CIN = U74999PB2016PLC045450

    Appeal No.C/191/02

    Decided On, 08 April 2009

    At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Chennai

    By, HONBLE MS. JYOTI BALASUNDARAM
    By, VICE-PRESIDENT & HONBLE MR. P. KARTHIKEYAN
    By, MEMBER (TECHNICAL)

    For the Appellants: A.K.Jayaraj, Advocate. For the Respondents: M.K.A.K.Mohiddin, JDR.



Judgment Text

Jyoti Balasundaram


Vide the impugned order, the Commissioner of Customs has rejected the declared value of Rs.13,80,050/- for Imation brand computer products/accessories imported by the appellants herein under Bill of Entry dt. 17.2.01 and ordered enhancement of value to Rs.33,80,050/-, confirmed duty of Rs.15,86,427/-, confiscated imported goods with an option of redemption on payment of a fine of Rs.10 lakhs and imposed a penalty of Rs.2 lakhs upon the importers. Hence this appeal.


2) We have heard both sides. We find that the values have been loaded on the basis of rates/cost of products under import contained in a floppy recovered from the office premises of the importers. The price as declared in the invoice and as available in the Imation price lists and the rate indicated in the floppy is set below :-


S.No.

Description declared

Qty.

Declared unit price US$

Price as per Imation Price list US$

Price as per floppy at Importers premises US$

1.

CR D Media

45360

0.18

0.25

0.42


2.

Diskettes 3.50

DS/HD-F(10)

14000

0.80

1.10

1.50

3.

Data Tape 6150

1000

0.85

1.75

5.60

4.

Diskettes 3.50

DS/HDF (10+2)

6900

1.00

1.25

1.80

5.

Imation

Data cartridge

DDS-90

2700

0.40

1.00

1.80

6.

Imation CD-RW

240

0.50

1.00

1.10

7.

Imation CD-Rewriter

9

50.00

-

115

8.

Data Tape 6525

1000

0.85

3.75

8.00


Although the prices in the price list of M/s.Imation Singapore Pvt. Ltd. showing ex-warehousing Singapore price, after extending discount of 40% in view of large quantities, may not be applicable to Imation products imported from Dubai, the product cost referred in the floppy which the importers explained was prepared for the purpose of applying for loan from banks, equally cannot be adopted for arriving at the correct value of the

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imported goods, as there is no legal provision for adopting such rate/price. The charge of misdeclaration of value, therefore, cannot stand and is set aside. We, therefore, accept the transaction value of the importers, set aside the impugned order and allow the appeal.
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