Undervaluation of goods

The importer has imported 18 consignments of plastic sheets over a period of three yeras. On investigation, documents evidencing gross undervaluation of sheets in respect of 8 consignments were found. Based on the gathered evidence, undervaluation in the case of other imports were also alleged and confimed.

The Tribunal held that as regards to balance 10 consignments, case has been made on the basis of conjectures on the ground that once under valuation was resorted to in respect of the 8 consignments the same must have been resorted to in respect of earlier consignments also. This was not acceptable as the two periods were different. There was not a single iota of evidence in respect of these consignments. The entire enquiry was limited to 8 consignments only. There was no reference to any contemporaneous imports during the relevant period nor any assertion that the international price remained the same during both the periods.

The Tribunal held that duty cannot be demanded on the basis of the presumptions and conjectures in the absence of any evidence of any nature.