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.
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 :-
Declared unit price US$
Price as per Imation Price list US$
Price as per floppy at Importers premises US$
CR D Media
Data Tape 6150
Data Tape 6525
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.