Home Case Index All Cases Customs Customs + AT Customs - 2014 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (2) TMI 1104 - AT - CustomsValuation of goods - Rejection of transaction value - Whether there can be two prices for import of the same goods for manufacture or as spare parts - Held that:- When undervaluation is alleged, the department has to prove it by evidence or information about comparable imports. For proving undervaluation, if the department relies on declaration made in the exporting country, it has to show how such declaration was procured. We may clarify that strict rules of evidence do not apply to adjudication proceedings. They apply strictly to the courts proceedings. However, even in adjudication proceedings, the AO has to examine the probative value of the documents on which reliance is placed by the department in support of its allegation of undervaluation. Once the department discharges the burden of proof to the above extent by producing evidence of contemporaneous imports at higher price, the onus shifts to the importer to establish that the invoice relied on by him is valid. Therefore, the charge of under-invoicing has to be supported by evidence of prices of contemporaneous imports of like goods. Section 14(1) speaks of “deemed value”. Therefore, invoice price can be disputed. However, it is for the department to prove that the invoice price is incorrect. Revenue has failed to prove otherwise apart from import of spare parts the value of the imported goods has been influenced being related person. Therefore, the impugned order is bad in the eyes of law. Accordingly, the same is set aside - Decided in favour of assessee.
|