After Budget Total Custom Duty on "Rum"

After Budget Total Custom Duty on Rum (2L or Less capacity) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Scotch ( More than 2L )

After Budget Total Custom Duty on Scotch ( More than 2L ) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Scotch

After Budget Total Custom Duty on Scotch (2L or Less capacity) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Bourbon Whiskey ( More than 2L)

After Budget Total Custom Duty on Bourbon Whiskey ( More than 2L ) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Bourbon Whiskey.

After Budget Total Custom Duty on Bourbon Whiskey (2L or Less capacity) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Liquors ( More than 2L ).

After Budget Total Custom Duty on Liquors ( More than 2L ) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Brandy ( More than 2L ).

After Budget Total Custom Duty on Brandy ( More than 2L ) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Liquors

After Budget Total Custom Duty on Liquors (2L or Less capacity) is 160%.

No Import Restriction. 

After Budget Total Custom Duty on Brandy

After Budget Total Custom Duty on Brandy (2L or less capacity ) is 160%.

No Import Restriction. 

After Budget, Total Custom Duty on "LED TV"

After Budget Total Custom Duty on LED TV set (Screen size below 63 cm) is 26.495%.

No Import Restriction. 

: Brief highlights of this Budget concerning individual Income Tax, simplification of Customs clearance and change in Tax related to your Industry

Indirect tax

Basic Customs Duty    

Steel grade limestone and steel grade dolomite @2.5%.

Imported flat rolled products of stainless steel @7.5%.

Forged Steel Ring used in manufacture of bearings of wind operated electricity generated @5%.

Excise Duty

Exempt Central Excise Duty

Machinery and equipment required for setting up of a project for Solar Energy Production.

Forged Steel Rings

Forged Steel Ring used in manufacture of bearings of wind operated Generators.

Solar Power Project

Concessional Basic Customs Duty (BCD) of 5 percent is also being extended to machinery and equipment required for setting up of a project for solar energy production.

Exempting from Excise Duty:

        i.            EVA sheets and solar back sheets and specified inputs used in their manufacture;

      ii.            solar tempered glass used in the manufacture of solar photovoltaic cells and modules;

    iii.            flat copper wire for the manufacture of PV ribbons for use in solar cells and modules;

     iv.            machinery and equipment required for setting up of a project for solar energy production;

       v.            forged steel rings used in the manufacture of bearings of wind operated generators;

Wind Power Project

Reducing the Basic Customs Duty (BCD) from 10 percent to 5 percent on forged steel rings used in the manufacture of bearings of wind operated electricity generators.

Also exempted the SAD of 4 percent on parts and raw materials required for the manufacture of wind operated generators.

Clean Energy Cess

Increased the Clean Energy Cess from ` 50 per tonnes to `100 per tonnes.

Service Tax

No Change noticed related to your Industry.

                                            Easy made doing Business

Reduced interface with Governmental agencies, dwell time and the cost of doing business.

1. Extended existing 24x7 customs clearance facility to 13 more airports in respect of all export goods and to 14 more sea ports in respect of specified import and export goods.

 2. Under an 'Indian Customs Single Window Project' to facilitate trade, importers and exporters would lodge their clearance documents at a single point only. Required permissions, if any, from other regulatory agencies would be obtained online without the trader having to approach these agencies.

Scheme of Advance Ruling                                

The scheme of Advance Ruling in indirect taxes is being expanded to cover resident private limited companies. This will allow these companies to seek advance ruling in respect of new activities being proposed to be undertaken by them.

Scope of Settlement Commission

The scope of Settlement Commission is being enlarged to facilitate quick dispute resolution.

Disposal of Appeal

To expedite the process of disposal of appeals, amendments have been proposed in the Customs and Central Excise Acts with a view to freeing appellate authorities from hearing stay applications and to take up regular appeals for final disposal.

Change in Budget in Direct Tax and Transfer price

                                                 Direct Taxes

1.      Increase personal income tax exemption limit by `50,000

i)                    From ` 2 lakh to ` 2.5 lakh in the case of individual taxpayers who are below the age of 60 years.

ii)                  Raise the exemption limit from ` 2.5 lakh to ` 3 lakh in the case of senior citizens.

2.      No change in the rate of surcharge for the corporates and the individuals, HUFs, firms etc.

3.       The education cess for all taxpayers shall continue at 3 percent.

4.      Increased the investment limit under section 80C of the Income-tax Act from ` 1 lakh to ` 1.5 lakh.

5.      Increased the deduction limit on account of interest on loan in respect of self occupied house property from ` 1.5 lakh to ` 2 lakh.

Manufacturing Sector

Provided investment allowance at the rate of 15 percent to a manufacturing company that invests more than ` 25 crore in any year in new plant and machinery.

This benefit will be available for three years i.e. for investments upto 31.03.2017. The Scheme announced last year will continue to operate in parallel till 31.03.2015.

Extended the 10 year tax holiday to the undertakings which begin generation, distribution and transmission of power by 31.03.2017.

Treating capital gains the income arising to Foreign Portfolio Investors (FPIs)

 from transaction in securities.

Continued the concessional rate of tax at 15 percent on dividend received by Indian companies from their foreign subsidiaries without any sunset date.

Extended the eligible date of borrowing in foreign currency from 30.06.2016 to 30.06.2017 for a concessional tax rate of 5 percent on interest payments.

Also extended this tax incentive to all types of bonds instead of only infrastructure bonds.

                                  Transfer Pricing

Made certain changes in Transfer Pricing regulations.

(1)   To be strengthened the administrative set up of APA to expedite disposal of applications. Introduced a "Roll Back" provision in the APA scheme so that an APA entered into for future transactions may also be applied to international transactions undertaken in previous four years in specified circumstances.

(2)   In order to align Transfer Pricing regulations in India with the best available practices, Introduced range concept for determination of arm's length price. However, the arithmetic mean concept will continue to apply where number of comparable is inadequate. The relevant data is under analysis and appropriate rules will be prescribed.

(3)   As per existing provisions of Transfer Pricing Regulations, only one year data is allowed to be used for comparable analysis with some exception. Proposed to amend the regulations to allow use of multiple year data.

(4)   Necessary legislative amendments to give effect to the above proposals including those relating to the Authority for Advance Rulings and Income-tax Settlement Commission will be moved in the current session of the Parliament.

Duty Free Baggage Allowance has been increased by Rs. 10,000/- to make your foreign trip pleasurable.

Now  , the free baggage allowance is Rs 45,000. 

If base station of fast trackers alone is imported then it will be classified under HS 847180.

The base station for the Fitness Tracker converts electrical signals from the pedometer into data signals the computer can understand. The base station is powered by the computer, and charges the Tracker when it is physically docked with the base station. The base station is principally and solely used with a computer and meets Note 5c to Chapter 84 as a signal converting unit.

  Hence, it will be  classified under HS 847180.

Fitness Tracker, which records steps and motion , is classified under HS 903180 .

If the Fitness Tracker makes use of a three axis accelerometer to record not only a user’s steps, but motion as well. It uses this information to determine how many calories are being burned by the wearer. It uses the built-in accelerometer to track the user’s movement in three dimensions, and attempts to calculate the number of calories burned from this information. Then it is classified under  HS 903180 .

The tariff classification of the Fitness Tracker is based on functions it perfoms and how it is sold and shipped

What is  Fitness Tracker:

The Fitness Tracker measures the intensity and duration of the user’s physical activities, calories burned, steps taken, distance traveled, and how long it takes one to fall asleep.

When worn, the Fitness Tracker automatically tracks your exercise intensity levels, calories burned, sleep quality, steps and distance. Calories, steps, and distance traveled are displayed on a blue Organic LED display on the device.

The Fitness Tracker stores this information and wirelessly transmits it to a base station that is plugged into one’s computer. The information is then uploaded to a personal Fitness website that allows the user to track their progress towards their personal fitness goals.

If the Fitness Tracker is packaged with the base station, the belt clip, and the wristband and they are imported together and sold as a set, thus they should be classified as a composite goods under  HS 903180  .

if imported separately,belt holster of Fitness tracker will be classified HS 392690

The belt holster is made of a single piece of plastic, and contains a cavity wherein the Fitness Tracker can be snapped into place. The belt holster allows the user to attach the Fitness Tracker to thick belts, belts it would not be able to fit around without the use of the holster.

Classification of the belt holster  will be  HS 392690

wireless digital pedometer is merely counts a user’s steps then it is classified under HS 902910 .

If  Fitness Tracker  is just  wireless digital pedometer, and merely counts a user’s steps then it is classified under  HS 902910 .

The Sleep Wristband classification is HS 630790.

 The Sleep Wristband  is a textile wristband composed of 88% nylon and 12% spandex. It has a hook and loop closure fastener strip, and the Fitness logo screen-printed on the band. The Fitness Tracker clips to the wristband is designed to be worn while the user sleeps, enabling the Fitness Tracker to track the user’s movement and determine when they fall asleep.

Thus ,if imported seperately ,the Sleep Wristband will be  classified  under  HS 630790.

The tariff classification of a Fitness Band for exercise is HS 950691

What is fitness band:

The product is an exercise device that consists of a latex band that has a PVC/ABS handle on each end. The band is designed for resistance training during an exercise workout.

Such Fitness Band for exercise are classified under  HS 950691

Level playing field is provided to domestic manufactures of Tunnel Boring Machine(TBM) vis a vis with imported TBM by the Central Government through Notification No 04/2014 -Customs,dated 3.2.2014

Notification to remove CVD benefits available to the imported  TBM-

 [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 04 /2014-Customs

New Delhi, the 3^rd February, 2014

            G.S.R.     (E).- In exercise of the powers conferred by sub-section (1) of section 25 of  the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2012-Customs, dated the 17^th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 185(E), dated the 17^th March, 2012, namely:-

            In the said notification, in the Table,  against serial number 397 and the entries relating thereto, the following shall be substituted, namely:-

“397

84 or any other Chapter

The following goods, namely:- (A) Tunnel boring machines (B) Parts and components of (A) for use in the assembly of Tunnel boring machines

Nil Nil

- -

- -”.

 [F.No. 354/10/2012-TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Note: The principal notification No. 12/2012-Customs, dated the 17^th March, 2012, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 185(E), dated the 17^th March, 2012 and was last amended vide notification No. 02/2014-Customs, dated the 20^th January, 2014, published vide number G.S.R. 35(E), dated the 20^th January, 2014.

Tunnel Boring Machines (TBM) are supplied for execution of tunneling infrastructure including India `s ambitious project of Metro Rail Networks. 

Earlier ,the effective rate of CVD as NIL has been prescribed in the case of Tunnel boring machine, Parts and components of Tunnel boring machines for use in the assembly of Tunnel boring machines when imported into India, as per SN 397 of the Customs Notification 12/2012. This notification benefit is extended to goods falling under Chapter 84 or any other Chapter. Thus the intention of this notification is to extend benefits to TBM as such and all goods used in manufacturing of TBM.

However,Tunnel boring machines falls under Central Excise Tariff Heading  8430 and used to  attracts Central Excise duty @ 12% ,whereas ,  parts and accessories  of  these  machines falls under Central Excise Tariff Heading  8431  and attracts Central Excise duty @ 12% as per the First Schedule to  the the Central Excise Tariff Act, 1985 (5 of 1986).

 What is law for levying  additional duty on imported goods equal to effective duty of excise leviable on the goods  manufactured in India:

 Section 3 of the said Customs Tariff Act 1975 (51 of 1975)   is reproduced herewith for easy reference -

“ (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article:”

Explanation to the above sub-section (1) of section 3 of the said Customs Tariff Act 1975 (51 of 1975)  is also reproduced herewith for easy reference

-“Explanation.— In this sub-section, the expression the excise duty for the time being leviable on a like article if produced or manufactured in India” means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty.”

In terms of the Explanation   to sub-section (1) of section 3 of the said Customs Tariff Act , additional duty is equal to effective duty of excise leviable on the goods  manufactured in India . This duty is also called Counter Veiling Duty (CVD) to the imported   goods.

Therefore,  before issuing  this Customs Notifcations, if Tunnel boring machines and their parts and components are manufactured in India then they are suffered Central Excise Duty @ 12 %, and whereas, if they are imported then NIL rate of duty is attracted. This has not only resulted in putting local manufacturers of these goods at  great disadvantage  vis-à-vis with imported goods, but ,it is also in total negation of basic principle of  Counter veiling Duty(CVD) to provide level playing field to imported goods and locally manufactured goods. 

Now,  after issuing  Notification No 04/2014 -Customs,dated 3.2.2014  by the Central Government ,to remove Nil rate of duty benefit available to the imported TBM , there is level playing field to imported and locally manufactured  TBM. 

  This  would make Indian manufacturer more competitive and fuel growth of economy.

Whether safeguard duty imposed under section 8C of Customs Tariff Act 1975, is exempted for import goods from China under Advance Authorisation Scheme.

1  That   investigation under section 8 B of the Customs Tariff Act ,1975 ,is for “ Serious injury “ whereas   for  “market disruption” is under  Section 8 C  of the Customs Tariff Act ,1975.   The test for “ Serious injury “  is very stringent  compare to  “market disruption”. And when   Safeguard  duty  on  import of any  goods from  China  under Section 8 B  is exempted under  Advance Authorisation  but    Safeguard Duty  imposed on import of any  goods from  China   under Section 8 C  of the Customs Tariff Act ,1975, is not exempted  under  Advance Authorisation  Scheme goes against very nature of  Safeguard  Duty  measure and protection.

2.Hence , by denying exemption  benefits of  Safeguard  duty  imposed under  section 8 C of the Tariff Act ,1975, it also amount denying exemption  benefits of  Anti -dumping duty  under  Customs Notification  96/2009.  This is against the very purpose of the Notification benefit issued for import under Advance Authorisation  Scheme.

3. That  if Anti-dumping duty is not taken into accounts  for determining Safeguard duty on  such import then  such Safeguard duty  amount will be  higher than  duty levied by Customs Notification   , 4 / 2012-Customs (SG)  ,dated the 5th October, 2012, against the final findings of DG( SG) and also violation of  rule 12 of the Customs Tariff (Transitional Product Specific Safeguard Duty) Rules, 2002.

4.Further,  that the both the Customs Notification, namely:  No.96/2009- Cus,Dated 11.09.2009  and 

No.93/2004 –Cus, Dated 10.09.2004, are still in force.  Therefore, if the same material is imported  from China under Advance Authorisation Scheme issued under previous FTP ( 2004-2009), then, it is not subjected to any safeguard duty imposed under Section 8 C of  the Customs Customs Tariff Act ,1975. But  , import of such material from China under Advance Authorisation issued under present FTP (2009-2014) are subjected to safeguard duty imposed under Section 8 C of the the Customs Customs Tariff Act ,1975. Thus, this charging of safeguard duty to import input under   section   8 C of the Customs Tariff Act ,1975 is against the provisions and principles of FTP and discriminatory in nature.  

5.The imported carbon black from China is to be incorporated into goods meant for export purpose. Hence, they are not for sale into domestic market and such goods cannot cause any injury to domestic market. Therefore, there is no safeguard duty can be imposed on such goods even under section 8 C of the said tariff Act.

  

4.Further, we submit that the both the Customs Notification, namely:  No.96/2009- Cus,Dated 11.09.2009  and No.93/2004 –Cus, Dated 10.09.2004, are still in force.  Therefore, if the same material is imported  from China under Advance Authorisation Scheme issued under previous FTP ( 2004-2009), then, it is not subjected to any safeguard duty imposed under Section 8 C of  the Customs Customs Tariff Act ,1975. But  , import of such material from China under Advance Authorisation issued under present FTP (2009-2014) are subjected to safeguard duty imposed under Section 8 C of the the Customs Customs Tariff Act ,1975. Thus, this charging of safeguard duty to import input under   section   8 C of the Customs Tariff Act ,1975 is against the provisions and principles of FTP and discriminatory in nature.

5.The imported carbon black from China is to be incorporated into goods meant for export purpose. Hence, they are not for sale into domestic market and such goods cannot cause any injury to domestic market. Therefore, there is no safeguard duty can be imposed on such goods even under section 8 C of the said tariff Act.

 If you require any further clarification on this draft, pl free to contact.

 

Thanks and Regards

Ravindra Kumar
Founder & CEO
Indirect Tax & Supply Chain
Global Tax Guru | Global Supply Chain Guru | Global Cad Guru
************************************************************
Email : ravindra@globaltaxguru.in
Website : globaltaxguru.in | globalsupplychainguru.com | globalcadguru.com
Office : 24,G.F., Scottish Mall, Sohna Road, Gurgaon(HR)
************************************************************
+91-9958257070
+91-124-2219229
+91-141-5138753
************************************************************

TV of any size have been removed from list of duty free baggage allowance

Now , LED TV ,LCD TV, PLASMA TV have been removed from list of items covered under duty free  Baggage allowance. This is effective from 26th August ,2013.  TV will attract duty of 35.7% if imported as bonafide baggage.

CRT  TV are still allowed for duty free allowance under Baggage.

TV imported through AirCargo  and Sea Cargo will attract duty @ 28.852%. The CVD on TV is  12 % , Basic Customs Duty @ 10 % , SAD@ 4% and Cess 2% .But , CVD on TV is based on MRP price in India. The value of  TV to determine  CVD is  calculated  after giving 35% abatement of MRP  price in India.

The recent Customs Notification issued  for removing  TV from Baggage Allowance.

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

     

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

NOTIFICATION

No. 84 /2013-Customs (N.T.)

New Delhi, the 19^th August, 2013

    G.S.R.   (E). - In exercise of the powers conferred by section 79 of the Customs Act, 1962 (52 of 1962), the Central Government hereby makes the following rules to further amend the Baggage Rules, 1998, namely:-

1. (1)    These rules may be called the Baggage (Second Amendment) Rules, 2013.

    (2)    They shall come in to force on the 26^th day of August, 2013.

2.         In the Baggage Rules, 1998, in Annex I, after item 5 relating to Gold or silver, in any form, other than ornaments, the  following item shall be inserted, namely:-

“6.  Flat Panel (LCD/LED/Plasma) Television.”.

 [F.No.354/112/2013-TRU]

[Raj Kumar Digvijay]
Under Secretary to the Government of India

Note. - The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide notification No. 30/98-Customs (N.T.), dated the 2^nd June, 1998 [GSR 296 (E), dated the 2^ndJune, 1998] and last amended vide notification No.25/2013-Customs (N.T.), dated the 1^st  March, 2013 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 139 (E), dated the 1^st  March, 2013. 

Claiming of wrong exemption notification is not misdeclaration as contemplated by section 111(m) of the Customs Act.

That claiming of wrong exemption notification is not misdeclaration as contemplated by section 111(m) of the Customs Act.

Relying  on  following case laws for above submission.

i)                    The  Honourbale Supreme Court  of India held ,in case of Northern Plastic Ltd Versus  Collector Of Customs & Central Excise, [1998 (101) E.L.T. 549 (S.C.)],

 vide Para 22, that wrong exemption notification are not  misdeclaration as contemplated by Section 111(m) of the Customs Act  :

“……. While dealing with such a claim in respect of payment of customs duty we have already observed that the declaration was in the nature of a claim made on the basis of the belief entertained by the appellant and therefore, cannot be said to be a misdeclaration as contemplated by Section 111(m) of the Customs Act. As the appellant had given full and correct particulars as regards the nature and size of the goods, it is difficult to believe that it had referred to the wrong exemption notification with any dishonest intention of evading proper payment of countervailing duty    “.

ii)                  As claiming  exemption notification cannot be treated  as declaration  for the purpose of  section 111(m).- J.K. Industries   v. Commissioner of Customs-1996(88) E.L.T 41 (Tribunal)

iii)                Claiming of classification and consequential exemption under a heading other than subsequently determined by the department does not amount to mis-declaration or an attempt to evade duty. No mala fides have been proved or established.- Hindustan Lever Ltd. V. Collector -1996(83) E.L.T. 520 (Tribunal); Metro Tyres Ltd. V, Collector -1994(74) E.L.T. 964( Tribunal)

Misclassification of goods and misdeclaration of goods are distinct in nature and scope

It is settled law that misclassification of goods and misdeclaration of goods are distinct in nature and scope. Misdeclaration  of goods   attract penal  provision under section 111(m) of Customs Act ,1962.But misclassification  of goods is a subject of interpretation  and  does not attract penal provision under Section 111(m).

   Relying on following case laws for above submission.

i)                    The Honourbale High Court  of Karnataka held, in case of  COMMISSIONER OF CUSTOMS, BANGALORE Versus  A. MAHESH RAJ - 2006 (195) E.L.T. 261 that In case of misclassification, it may be bona fide case of wrong classification as the importer or the person clearing the goods may not be fully conversant with the Schedule to the Act.

The relevant portion of  Para  20  of above cited  case law has been reproduced below as:

“. The scope of the provisions cannot be unduly enlarged if the intendment of the Legislature to provide for settlement in cases of short levy or non-levy on account of misclassification or misdeclaration also, as there is a vast and considerable distinction between cases of misclassification of goods and misdeclaration of goods. A misclassification of goods will only result in duty liability being at a different rate in terms of entry under which it is classified, whereas misdeclaration can be a situation of suppression, distortion and misrepresentation. In a situation of misclassification, only goods are disclosed or declared but goods are not properly classified for the purposes of determination of rate of duty, whereas in a case of misdeclaration, goods might not have been declared correctly at all, in the sense description is not of the actual goods also quantity may varying and mischief being deliberate and designed to avoid payment of customs duty. In case of misclassification, it may be bona fide case of wrong classification as the importer or the person clearing the goods may not be fully conversant with the Schedule to the Act. In the case where there was no deliberate or  intended desire on the part of the importer to evade or avoid payment of any customs duty, in tact, to provide immunity and protection of such class of people ,Chapter XIVA has been ushered in ……….”.

Ii) Misdeclaration can be of description but not of classification – Bajaj Health & Nutrition  Pvt Ltd V. Commissioner ,2004(166) ELT 189 (Tri)

Iii)    Mens rea not attributable – if importer have claimed wrong classification according to his limited Understanding  of the Customs Law- Jay Kay Exports & Industries V. Commissioner -2004(163) E.L.T. 359 (Tri-Kolkata)

Iv ) Demand on account of wrong classification –confiscation not resortable when description of goods given correctly- Hindustan National Glass &Indus limited V.Commissioner , Calcutta-2002(145) E.L.T.162(Tri-Kol)

v) The Honourable High Court of Bombay  ,in  case of Commissioner Of Central Excise Mumbai-V   Vs Guru Plastics Work, 2010 (261) E.L.T. 60 (Bom.),uphold the view of learned  Tribunal  that in the issue of classification  ,imposition of penalty was not called for.   The Para 2 and 3 of this order is reproduced here:

”2. From the facts and record, we find that the learned Tribunal had recorded the finding that the issue of classification in the case was an issue and in these circumstances, the imposition of penalty was not called for. The matter was thereafter remitted back to the Commissioner to re-determine the valuation as per the formulae in the case of M/s. Ujagar Prints v. Union of India - 1989 (39) E.L.T. 493 (S.C.).

3. It is this order which was the subject matter of the appeal before us. The law insofar as Section 11AC has been settled in the judgment of the Supreme Court in Dharamendra Textiles, 2008 (231) E.L.T. 3 (S.C.) and explained in Rajasthan Spinning & Weaving Mills Ltd., 2009 (238) E.L.T. 3 (S.C.) has laid down that Revenue has to prove the predicates of Section 11AC, one of which is that the non-payment of duty was with an intent to evade payment of duty. In the instant case, there is a clear finding of fact that there was a vexed issue of classification.”

Postal import-No confiscation of goods imported through parcel on account of misdeclaration and undervaluation

In case of postal parcel, declaration on goods is done by  foreign exporter(sender).Therefore, any wrong declaration for value and description of goods on the parcel ,Indian buyer cannot be held responsible. Hence, no fine and penalty on this account.
(This is based on CESTAT Ahmedabad judgement reported in 2013(293)E.L.T.412(Tri.-Ahmd.))