Law: Customs Act, 1969

Section: 25,25(5),32,32(3)(3A),80,156(1)(4)(14),

Customs Act (IV of 1969)---.------.----Ss. 25, 32, 80 & 156(1)(4)---.---Determination of customs value of goods and assessment of duty---.---Misdeclaration---.---Audit team duly constituted for post clearance audit, pointed out that "Lead acid batteries" imported by the importer vide different Goods Declarations, were misclassified under PCT Heading 8506.8000 attracting customs duty at 10%, instead of correct classification under PCT Heading 8507.2000 attracting Goods Declaration at 20%---.---Collector of Customs (Adjudication)/Adjudicating Authority vide its consolidated order-in-original ordered the importer to deposit the short amount of duty/taxes paid into Government Treasury---.---Adjudicating Authority also imposed a personal penalty upon the importer in terms of cl.(14) of S.156(1) of the Customs Act, 1969, which had been challenged by the importer before the Appellate Tribunal---.---No chemical examination of any laboratory was produced to establish that Batteries in question were "Lead acid Batteries" falling under PCT heading i.e. 8507.2000, attracting Goods Declaration at 20%---.---Department was not in possession of any sample so that, it could have been referred to a laboratory for chemical analysis and its composition---.---No extra weightage, in circumstances, could be given to picture of the battery alone, when its chemical composition could not be substantiated from an independent laboratory report---.---Conclusion of short realization of duty/taxes, was mainly drawn by the department on the basis of image available in "WeBOC data"---.---Such an image, could not be made "material in particular" to substantiate that the importer had paid short amount of duty/taxes---.---When a system was laid for the purposes of determination of correctness of declaration, it had to be adhered to and appreciation of any evidence in that respect; had to be in conformity with what was prescribed; because otherwise depending on something outside the laid methodology, would amount to an aberration and upon hearsay; which could damage the requirement given by the law---.---Examination report tendered by the Customs Authorities, constituted in itself an…