2026-VIL-431-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs - Valuation and classification of "walking stick with torch" - The appellant had imported a consignment of assorted goods from China which were subjected to 100% examination by the customs authorities - Authorities had re-determined the assessable value of the goods under Rule 7 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 based on a market survey and had also re-classified one of the items 'walking stick with torch' from CTI 6602 0000 to CTI 9405 4900. The appellant challenged the re-determined value and re-classification in appeal - HELD - The re-determination of the assessable value solely based on the market survey without considering the requirements under Rule 7 of the CVR, 2007 such as the prices of identical or similar goods sold at the greatest aggregate quantity at the same or first commercial level after importation was not in conformity with the legal provisions - the requirement of comparison of the goods sold in the domestic market at various prices, whether these were at the same commercial level, being at the highest aggregate quantity and that such sale was nearer to the time and place of import (maximum of six months from the date of import) as provided under Note to Rule 7 of the ‘Interpretative Notes’ specified in the Schedule to CVR vide Rule 13, have not at all been considered in arriving such value re-determined by the Department - The authorities below had re-determined the assessable value solely on the basis of investigation report submitted by SIIB, without applying the legal provisions of various rules provided under the CVR, 2007, sequentially. Therefore, the whole basis of market survey conducted about the price of similar or identical goods, and based on such value, the assessable value having been re-determined is contrary to the law and factually incorrect - The impugned order is set aside and the appeal is allowed - Classification - The re-classification of the 'walking stick with torch' from CTI 6602 0000 to CTI 9405 4900 is not correct as the essential character of the goods was that of a walking stick and not a luminaire and there is no mis-declaration of the walking sticks with torch for attracting non-compliance requirements under BIS certification and in respect of other goods for mis-declaration of value, description under Section 111(d) and 111(m) of the Act of 1962 - Confiscation and penalty on imported goods - The authorities had confiscated certain items of the imported consignment under Sections 111(d) and 111(m) of the Customs Act, 1962 for mis-declaration of description and value, and had also imposed redemption fine and penalties on the appellant - HELD - There was no evidence of deliberate mis-declaration of description or value by the appellant-importer. The variations in the description of certain items like 'kitchen knife set' and 'Halloween gift items' were minor and did not amount to mis-declaration. The Tribunal also held that the requirement of BIS certification was not applicable for the 'walking stick with torch' as it was correctly classified under CTI 6602 0000 - The Tribunal set aside the confiscation, redemption fine and penalties imposed on the appellant-importer.
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