Valuation (Customs) — Scrap — Value of prime metal always higher than value of scrap of that metal (2) Confiscation and penalty — Misdeclaration established — Goods liable to confiscation and penalty irrespective of mala fide (3) Valuation (Customs) — For Valuation and classification, not necessary to establish payment of extra remittance
The Supreme Court
Bench comprising Hon’ble Mr. Justice B.N. Kirpal and Hon’ble Mr. Justice Arijit
Pasayat on 25-1-2002 dismissed the
Civil Appeal No. 304 of 2002 filed by Multimetals Ltd. against the CEGAT Order
No. 2640/2001-WZB/C-II, dated 17-10-2001 and reported in 2002 (144) E.L.T. 574 (Tri - Mumbai) (Commissioner v. Multimetal
Ltd.)
The Appellate
Tribunal in its impugned order had held that when goods contained large
portions of prime metal which were declared as scrap metal, price mentioned in
invoice is not to be accepted as transaction value as the value of prime
material will always be higher than the value of the scrap of that material.
The Tribunal also
held that for the purpose of valuation and classification it is not necessary
to establish whether any extra remittance has been made to the supplier or not.
The Tribunal further
held that when transaction value is not acceptable, valuation is to be done on
any contemporaneous import or under provisions of Customs (Valuation) Rules,
1988.
The Tribunal further confirmed the confiscation of goods and the penalty as the misdeclaration of prime metal as scrap was established.