[karira]

anandnav,

1. "Gift" for purposes of a Customs Officer is when a person X sends a gift to person Y. "Gift" does not mean that person Y imports 25 pcs (just a random example) to distribute them as "gifts" to his friends or relatives.
2. Similarly, lets say you legally import something worth US$ 100 and give it away "free". The customs will not take this as a "gift" and will still charge Customs Duty for it.

In your case, I think Customs Duty is justified.

In future (at least for the next 6 months or so) , if you are getting anything from China (which is too small for Air cargo), get it by a courier service. It is expected that EMS route will be thouroughly overhauled due to present misuse.
Just be careful (and warn the courier company in advance) about the nature of the goods and the customs duty applicable, otherwise the assessing officer will charge you some random rate of duty.
Even if you do not agree with the assessing officer, please ask the courier company to pay the duty "under protest" on your behalf. This will give you a chance to appeal the assessing officers assessment and might help you in getting a refund. Duty paid normally (not under protest) cannot be appealed against.

For a reliable Customs House Agent (CHA) just have a lok at the Yellow Pages and try to pick on a reputed name / international CHA.