Full Judgment
However, an adjudication Order No. 6/2000 dated 21-7-2000 was passed by the Commissioner of Customs rejecting the value declared by the appellant, ordering the assessments of the goods based on the value ascertained during market enquiry, confiscating the goods under Section 111(d) and 111(m) of the Customs Act and imposing a penalty of Rs. 2 lakhs on the importer. The present appeal is directed against the said order in adjudication.
2. We have heard the ld. Counsel for the appellant and ld. SDR for the Revenue. We find that the basis for the charge of mis-declaration of value as made out in para 5 of the show cause notice is as under :- "Whereas the importer has declared the price of this item @ US $ 19.00 (Rs. 831.25) per pcs. for 9 fins oil filled radiator and @ US $ 20.00 (Rs. 875) for 12 Fins Oil Filled Radiator. On inquiry in the local market the identical goods were not found, however, the similar type of the Heat Radiator of Fedders Lloyed make are available @ Rs. 6900 each. Which contains only 7 Fins." 3. Rule 8 of the Customs Valuation Rules, forbids, in terms, the adoption of value of indigeneously produced goods as a basis for valuation of goods to Customs duty. Rule 8(2) of the valuation Rules reads as under :- "No value shall be determined under the provisions of this rule on the basis of- 4. From the above, it is clear that the very basis of the proceeding was against the specific terms of Customs Valuation Rules. In such a case, the adjudication order passed, has to be held as illegal and set aside. We do so. With consequential relief to the appellant. We are informed that the imported goods are still with the Customs. They shall be assessed to duty on the basis of the declared values and released to the appellant, forthwith.