CUSTOMS ACT, 1962

Section 28

Recovery of duties not levied or short levied or erroneously refunded - Valuation of import consignments of appellant - Proceedings for confiscation of goods, imposition of penalties -

Assessee was importer of electric decorative lightings. These import consignments were of brand names 'Diyas' and 'Mantra', and the enquiry proceeded to ascertain whether the goods had been correctly valued for the purposes of customs duty. Proceedings were initiated for revaluing the current import consignment, as well as past consignments within the aforesaid window, apart from the proposal for confiscation of goods and imposition of penalties. A show-cause notice was issued under section 28 providing for recovery of duties not levied or short-levied or erroneously refunded, for any reason other than collusion or any wilful mis-statement or suppression of facts. Goods were held liable for confiscation. A perusal of the order shows that valuation of goods had been made under rule 7 and rule 9 of the Customs Valuation Rules, 2007. Held: Electrical decorative lightings, normally, are not highly branded products, exceptions apart. It does appear that even though the imports were under the brand names 'Diyas' and 'Mantra', they were not trademarks of such nature as would make them an exclusive product. Thus, data was certainly available, which could have been utilised to obtain the pricing for imports from U.K., of identical goods or similar goods. There was really no occasion to straightaway proceed to determine transactional value by relying on rules 7 to 9 and a fundamental mistake committed in the manner of implementation of statutory rules. Therefore matter was remanded back for fresh consideration.

REFERRED : Collector of Customs, Bombay v. Swastic Woollens (Private) Limited & Ors., AIR 1988 SC 2176: (1989)72 STC 201 (SC).

FAVOUR : In assessee's favour

A.Y. :

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