2004 (3) TMI 662 - AT - Customs

Summary

Issues: Valuation of imported ship for Customs duty assessment

Issue 1: Valuation of the Ship
The issue in this case revolves around the valuation of a ship cleared under a Bill of Entry, with the declared price differing from the original price agreed upon between the owner and a different party. The appellant sought a stay on the operation of the Commissioner (Appeals) order, which accepted the reduced price declared by the appellants in their Bill of Entry. The Assessing Officer provisionally assessed the vessel to Customs duty based on the original price, which was contested by the appellant.

Issue 2: Interpretation of Customs Act and Valuation Rules
The primary contention raised by the appellant was that the lower appellate authority overlooked the provisions of Section 14 of the Customs Act by accepting a price for the vessel that was not available at the time of importation. The appellant argued that only the price agreed between the owner of the vessel and the party who backed out of the deal should be considered as the assessable value under Section 14 of the Customs Act. The appellant relied on certain decisions of the Tribunal to challenge the decision of the lower authority.

Analysis:
In analyzing the case, the Tribunal considered the arguments presented by the ld. DR on behalf of the appellant and the written submissions of the respondents. The Tribunal noted that a fundamental issue arose regarding whether a price agreed between the foreign supplier and the Indian importer after the importation could be accepted as the assessable value for imported goods under Section 14 of the Customs Act. The Tribunal observed that the lower appellate authority did not cite any case law to support their contention, while the appellant relied on Tribunal decisions to challenge the decision. The Tribunal found that no judicial authority was cited to justify the view taken by the lower appellate authority, leading them to conclude that the Revenue had made out a strong prima facie case.

In light of the above analysis, the Tribunal granted a stay on the operation of the impugned order, indicating a favorable stance towards the appellant's arguments regarding the valuation of the imported ship for Customs duty assessment.