Case Law Details
Shree Shyam Enterprises Vs Commissioner of Customs (Import) (CESTAT Delhi)
CESTAT Delhi held that re-determination of value resorting to valuation under Rule 7 of the Customs Valuation Rules justified on failure to advance any documents/ invoice to substantiate the value of goods.
Facts- A specific intelligence was gathered by the officers of Customs (SIB) ICD (Import) that goods contained under Bill of Entry No 4873621 dated 12.04.2016 (RUD-1) to be grossly undervalued Accordingly, an Alert No.04/2016-17 dated 12.04.2016 was issued against the Bill of Entry No 4873621 dated 12.04.2016 filed by CHA M/s. Abhinav Cargo Movers on behalf of importer, M/s. Shree Shyam Enterprises, 18/4, Phase-2. Mayapuri New Delhi having IEC No. 0514046007. The importer had declared the assessable value as Rs.23,20,035/- and duty payable as Rs. 6,13,145/- for 9400 pieces of Diaphragm Boost Pump of „E-Chen‟ brand shifted in 940 Cartons.
The goods of the said Bill or Entry were examined 100% by SIIB officers and the entire proceedings were recorded under Panchnama dated 13.04 2016 (RUD-2) drawn on the spot in presence of two independent witnesses, representative of importer and G-Card holder of CHA firm. However, the goods were detained for further investigations on a reasonable belief that the subject goods were undervalued with an intent to evade payment of customs duty. The container was again stuffed with the same goods and sealed with Custom Seal. On completion of examination proceedings, it was advised to ask the importer to get the goods stored in the Customs Bonded Warehouse u/s. 49 of the Customs Act, 1952, to avoid incurring demurrage and detention charges of the container.
The investigating officer showed him computer print outs of e-bay for the identical goods which showed selling price of @1799/- per piece, and at Alibaba, the retail sale website, the price shown was 15-16 USD (FOB) for a quantity of 100 pcs.
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