2003 PLP (Trib (PTD)

Date of hearing: 22nd April, 2002. ZAFAR-UL-MAJEED, MEMBER (TECHNICAL).

This appeal has been filed by the Collector of Customs, Lahore against Order -in-Original No.8 of 1999, dated 21-1-1999 passed by the Collector of Customs, Central Excise & Sales Tax (Appeals), Central Zone, Lahore whereby the Customs Authorities have been directed to assess a consignment of old and used pipes at the value of Rs.10,000 per M. Ton.

2. The relevant facts giving rise to this appeal are that Messrs A.A. International, Lahore (the contesting respondents) imported a consignment declared to contain "bundled , scrap and welded pipe cuttings" weighing 42,890 kgs and sought clearance thereof vide Bill of Entry No.239, dated, 15-7-1997 filed at Lahore Dry Port, On examination, the consignment was found to contain 40,790 kgs. of old and used but serviceable steel pipes of different lengths and dimensions and only 2400 kgs of bundled scrap. Value of serviceable pipes was determined by the Customs Authorities at Rs.17,000 per M. Ton and a contravention case was made out against the respondents as .import of old/used serviceable pipes was not allowed under the then prevailing Import Policy. The goods were accordingly confiscated by the Adjudicating Officer for violation of section 3(1) of the Import and Exports (Control) Act, 1950 read with sections 18 and 32 of the Customs Act, 1969 but allowed release against redemption fine equal to 10%. of their value besides leviable customs duty and taxes. After having the goods released, the respondents challenged this order before the Collector (Appeals), Lahore who remanded the case back with the direction for assessment of goods at the value of Rs.10,000 per M. Ton if the Customs Authorities did not have any contrary documentary evidence. The case was accordingly decided by the Additional Collector, Customs Dry Port, Lahore afresh who vide his Order-in-Original No.5 of 1998, dated 3-3-1998 held the valuation of goods at Rs.17,000 per M. Ton correct on the basis of evidential Bill of Entry No.8743, dated 19--6-1997 and maintained the pitch of redemption fine at 10% of the value thereof Aggrieved by this order, the respondent again filed appeal before the Collector (Appeals), Lahore who vide order, dated 21-1-1999, which has been impugned through the instant appeal, directed assessment of goods at Rs.10,0000 per. M. Ton while maintaining the rest of the order.

3. The appellant has challenged the impugned order, inter alia, on the grounds that the. assessment of goods at Rs.17,000 per M. Ton was made correctly in view of their physical condition and the evidence of value of similar goods available with the Department; that the respondents took clearance if the goods on assessed value without raising any objection which amounted to their implied admission; acceptance of the assessment; that determination of value of goods having no standard specifications involved question of fact which could not have been re-ascertained after the goods had been cleared and that the assessment of value by the Collector (Appeals), Lahore without physical examination of goods was violative of the conditions of sections 80 and 83 of the Customs Act, 1969.

4. Learned counsel for the respondents opposed the appeal pleading that the value of goods in question was correctly declared being the same at which the goods were purchased from abroad. According to him, the value of goods for customs purposes as envisaged under section 25 of the Customs Act, 1969 should be the value of similar goods prevailing in the country of origin and that the onus to establish misstatement on the part of the importer was on the Department. To support his contention, learned counsel relied on 1992 SCMR 1083.

5. We have examined the record and carefully considered the submissions made by both sides. There is considerable force in the appellant's arguments that valuation of old and used serviceable goods lacking standard specifications cannot be done without their physical examination. Moreover, besides physical condition of the goods, the Customs Authorities did take into consideration the prevalent value of identical ' goods based on the evidential Bill of Entry No.8743., dated 19-6-1997 pertaining to the same period. The respondents paid customs duty and taxes on the value of Rs:17,000 per M. Ton as assessed by the Customs Authorities and had the goods released which, as rightly contended by the appellant, amounted to its implied acceptance. A perusal of the impugned order also reveals that the learned Collector (Appeals) while fixing value of goods in question at Rs.10,000 per- M. Ton, neither discussed the physical condition of the goods, which was not possible without their examination nor considered the evidential bill of entry relied upon by the Customs Authorities. That being so. In ours view, the impugned order is not sustainable under the law.

6. For the aforesaid reasons, the appeal is accepted and the impugned order is set aside. C.M.A./662/Tax (Trib.) Appeal Accepted.