Home Case Index All Cases Customs Customs + AT Customs - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 959 - AT - CustomsValuation of imported goods - Enamelled Aluminum Wire - re-determination/enhancement of the transaction value based on the LME price - reliability of NIDB data - NIDB data comparison pertained to Braiding Wire of Aluminium Alloy - HELD THAT - It is found that the impugned orders passed by the ld. Commissioner suffer from legal infirmity inasmuch as the comparison offered based on NIDB Data is with reference to an altogether different product viz. Braiding Wire of Aluminium Alloy and therefore, it certainly cannot be considered as identical or similar goods, viz. Enamelled Aluminum Wire. Also reliance placed by the Ld. ommissioner on NIDB Data relating to import of some Aluminium Magnesium Alloy Wire imported at Nhava Sheva can also not offer a realistic comparison of identical goods as they do not match in terms of the description and quantity. The manufacturers Certificate state that Enamelled Aluminum Wire under import was manufactured out of scrap. In view of the manufacturers certification provided at the time of import and with no claim to doubt the veracity of the said contention, the test results as offered by the CRCL and the Sriram Institute for Industrial Research, New Delhi, the Department s claim of disputing the description and valuation of the import goods is bereft of any merit. Also the comparisons offered of allegedly similar goods either by way of proforma invoice of NIDB data are also without any merits as they cannot stand legal scrutiny. The Department s contention of taking LME prices as the bench mark price is not on a sound footing in view of the certification from the manufacturers that the import goods were produced out of scrap. Therefore to contend the valuation of import goods based on the value of prime material holds no legal substance and is liable to be quashed as the said imported goods viz. Enamelled Aluminium Wire are not the products of virgin material but manufactured out of scrap. It would not be appropriate to allege mis-declaration on the part of importer either for the description of the goods or for their valuation as the comparison rendered by the Department cannot be upheld under the facts and circumstances herein. The price of the import product based on the price of prime virgin material does not withstand scrutiny in view of the explanation and contention offered by the manufacturers, which has not been disputed by the Department. This Tribunal in the case of M/S. B.B.M. IMPEX PVT. LTD., VERSUS COMMISSIONER OF CUSTOMS (PREVENTIVE) , NEW DELHI 2020 (6) TMI 425 - CESTAT, NEW DELHI has held that NIDB Data cannot be relied upon when it is relating to different quantity and quality of goods. The test report and the manufacturer s certificates have not been contested by the Department. The contemporaneous evidence cited in support by the Department, are not inconsonance with the description of the goods under import. Appeal allowed.
Issues involved:
The issues involved in this case are the re-determination of assessable value of imported goods, rejection of transaction value, demand for differential duty, confiscation of goods, provisional release on redemption fine, imposition of penalty, mis-declaration of goods, comparison of NIDB data, and valuation based on LME price. Re-determination of assessable value of imported goods: The appellant, M/s Karan International, filed appeals against orders enhancing the value of imported "Enamelled Aluminum Wire" consigned from China. The Commissioner rejected the transaction value declared under Customs Act and re-determined the assessable value under Customs Valuation Rules, demanding payment of differential duty, confiscating the goods, releasing them on redemption fine, and imposing penalties on the importer. The appellant contested the re-determination, stating it led to excess duty payment and that the goods were not mis-declared. Mis-declaration of goods and comparison with NIDB data: The Department claimed the imported goods were Enamelled Copper Clad Aluminium Wires, not Enamelled Aluminum Wire as declared. However, tests conducted by various institutes confirmed the goods were Enamelled Aluminum Wire. The Department issued a show-cause notice proposing to enhance the value of the goods and re-determined the value based on LME price. The appellant argued that the goods were not manufactured from prime materials, as certified by the manufacturers, and disputed the comparison of NIDB data, stating it was not for identical goods. Legal infirmity in the Commissioner's orders: The Tribunal found legal infirmity in the Commissioner's orders as the NIDB data comparison was for a different product, Braiding Wire of Aluminium Alloy, not Enamelled Aluminum Wire. The manufacturers' certificates confirmed the goods were made from scrap, not prime materials. The Tribunal held that the Department's valuation based on LME price was incorrect, considering the goods' manufacturing process. The orders were set aside based on the manufacturers' certifications and lack of evidence to support mis-declaration. Judgment: The Tribunal allowed the appeals, citing the manufacturers' certificates, test reports, and lack of evidence supporting mis-declaration. The comparison with NIDB data was found inadequate, and the valuation based on LME price was deemed inappropriate. Following legal precedents, the Tribunal set aside the Commissioner's orders and provided consequential relief to the appellants.
|