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2015 (6) TMI 109 - AT - CustomsDetermination of valuation of imported goods - related party transaction - differential customs duty - held that:- DC (SVB) has finalized the valuation under Rule 2 (2) (i) (ii) ofo CVR and rejected their invoice value and ordered for 39% loading - LAA has held in the impugned order that rejection of the transaction by the adjudicating authority was right and further held that loading of 39% of the invoice value by the adjudicating authority is not correct and the correct loading should be 65.125%. We find the appellant's main contention before LAA is to set aside the loading of 39% ordered by adjudicating authority whereas the LAA before enhancing the percentage of loading from 30% to 65.125% ought to have given an opportunity to the appellant to put for their defence. Further, the appellants have submitted entire records of third party invoice which has not been taken into consideration - If the LAA wants to enhance the penalty, fine or demand any duty such order shall be passed only after the appellant is given notice. In the present case even though there is no demand of customs duty but by enhancing the value of loading from 39% to 65.125% which has extra duty liability on the appellants and the enhancement had direct bearing on the increase of duty. It is mandatory on the LAA to follow principles of natural justice before proposing for enhancement of value from 39% to 65.125% which the LAA has not followed in this case and the case needs to be remanded to LAA. Accordingly, impugned order is set aside and the matter is remanded to Commissioner (Appeals) with a direction to decide the issue on merits after giving sufficient opportunity to the appellant. The appellant is directed to co-operate with the proceedings and produce all the relevant documents before LAA. - Decided in favour of assessee.
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