Bonafide of Usha International cannot be suspected just because vendor chose to affix different price tag: CESTAT quashes redemption fine [Read Order]

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the imposition of redemption fine and held that the bonafide of Usha International cannot be suspected just because vendor chose to affix different price tag.

While assessing the Bill-of-Entry, the container was opened on a second check basis and upon inspection, the officials did not find any discrepancy as regards the description of the goods; the packages were found to be in pre-packaged condition and also complying with the labelling requirement in terms of the above Notification, but however, they also appear to have noticed that the MRP on the pre-packaged goods was INR 2650/- as against the declared MRP of INR 2100/-.

Accordingly, the Revenue worked out the differential duty of Rs.1,30,793/- as the MRP of the goods was assumed to be mis-declared by the importer to evade payment of duty.

A perusal of the e-mail exchanged between the appellant and their vendor clearly indicates the request insofar as the MRP is concerned, but however, it was perhaps the mistake of the vendor/supplier in not effecting the required RSP tag. No doubt, the original price as per the purchase order, which is placed at page number 53 of the appeal memorandum (dated 27.05.2013) was INR 2400 per piece.

A Two-Member Bench comprising M Ajit Kumar, Technical Member and P Dinesha, Judicial Member observed that “Clearly there was an understanding as regards the value is concerned, in support of which documents in the form of e-mails have been placed on record, which are not disputed by the Revenue. The value affixed on the label did not clearly show the price agreed upon in the purchase order dated 27.05.2013. Further, the said price tag was sought to be revised for the reason of fluctuation in the value of the Indian Rupee as against the U.S. Dollar, which fact was also not disputed, but however, the same apparently was not implemented by the foreign vendor / supplier.”

“Hence, we are of the view that the bona fides of the appellant cannot be suspected just because the vendor / supplier chose to affix a different price tag and therefore, there is no case for the Revenue to order confiscation of the goods in question” the Tribunal held.

To Read the full text of the Order CLICK HERE

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