Case Law Details
Brief facts
It has been held in case of Commissioner Of Customs (Import) V/s. M/S. Finacord Chemicals (P) Ltd. & Ors. it was held by supreme court that, In August, 1991, respondent herein imported certain containers of alcohol under the description “Undenatured Ethyl Alcohol’ (Malt Spirit plus or minus 59.3% Vol.) from an intermediary, M/s. Ravco International Ltd., England (hereinafter referred to as ‘RIL'(for short). As per the Department, these imports were under invoiced at pound 1.40 per litre whereas the actual price of the said goods was pound 3.78 per litre. This led to issuance of a show cause notice dated 28.09.1992 upon the importers/respondents herein. It was alleged that the correct transaction value of the imported goods was pound 3.78 per bulk litre and that the goods were imported against invalid licenses. Accordingly, demand of customs duty was raised against respondent. It also proposed confiscation of the goods and penal action against the respondents. The Collector of Customs vide Order-in-Original dated 28.02.1995 upheld the mis declaration and undervaluation.
Aggrieved, the respondents filed appeals before the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as ‘CESTAT’) and the CESTAT vide its final order dated 10.09.2003, partly allowed the appeals thereby setting aside the order of the Collector regarding enhancement of the unit price, while upholding that import of the said goods was unauthorised and was liable for confiscation. However, the CESTAT reduced the amount of fine imposed and set aside the penalties imposed on the respondents. Hence the present Appeals.
Held by Hon’ble Supreme Court of India
The Hon’ble Supreme Court stated that as far as the first issue of import price of the liquor in question is concerned, the order of the Collector reveals that the respondents-assessee have relied upon a letter indicating that the goods were imported at the rate of UK pound 1.40 per bulk litre. After discussing elaborately, the Collector rejected the authenticity or evidentiary value of the said letter. However, apart from this letter, the respondents had also produced invoices and in these invoices price of UK
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