C.N.B. Nair - (1.) THE appellants imported polyester fabrics from M/s Tumoe Sangyo Co. Ltd., Japan under DEEC licence. THE licence was for the import of polyester fabrics. THE Commissioner, Customs in the impugned order held that the goods under import had been undervalued and the DEEC licence did not cover the imported goods. He rejected the value of US $ 1.00/Meter and enhanced the value to US $ 4.00 per meter. As a result of these findings, the goods have been confiscated and penalty imposed on the appellants.
(2.) Arguing the stay applications today, the learned Counsel appearing for the appellants submits that the order of the Commissioner is wholly contrary to the facts and law. He submits that the goods imported by the appellants also fell under the category of polyester fabrics and those goods are used for production of garments for export. He submits that the finding in the impugned order that the material under import was not covered by the licence had no basis in facts. With regard to valuation of the goods, the learned Counsel submits that value has been fixed by the Commissioner on the basis of the market value in Bombay for goods imported from USA, while the goods in the instant case were imported from Japan. This valuation method adopted by the Commissioner is contrary to the provisions of Rule 5 of the Customs Valuation Rules. Heard the learned SDR.
(3.) ADMITTEDLY, the method of valuation adopted by the Commissioner is contrary to the specific provisions of Valuation Rules. Such valuation, therefore, cannot be upheld. The finding that the goods under import are not useable for manufacture of the specified export goods, also does not appear to be based on reliable material.;