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2016 (1) TMI 425 - AT - CustomsValuation - request for provisional clearance of imported cars against an ATA Carnet for the purpose of exhibition at Auto Expo - The adjudicating authority ordered the assessable value to be taken as Carnet price + Insurance + Freight + Landing Charges. Before the Commissioner (Appeals) the appellant also pleaded that since their case is under investigation by SVB Mumbai in respect of other cars imported, the lower authority ought to have permitted provisional clearance after acceptance of 1% Revenue deposit. Held that:- In this particular case when import of identical cars have been made at lower values which are comparable to the value declared at the time of filing Bill of Entry for sale of the cars imported under Carnet, there is no justification to take the higher value mentioned in the Carnet. The appellant gave specific Bills of Entry Nos. 543752, 541155, 510318 under which contemporaneous imports were made assessed to duty on provisional basis as the valuation of the cars was being examined by Special Valuation Branch (SVB), Mumbai, the lower authorities ignored this aspect and did not allow the provisional assessment on similar basis in the case of the cars imported under Carnet. In any case it is shown by the Ld. Advocate that the SVB Order did not establish that the value between appellant and their Principal had influenced the price and had consequently accepted the declared prices. Therefore, we find no reason to differentiate between the cars imported under Carnet and the cars imported otherwise. In the present case even though buyer and seller are related it is established by the SVB order that the price has not influenced the relationship. Therefore, the transaction value cannot be rejected. Revenue rejected the transaction value on the basis that the value declared in the Carnet is much higher. We find that Rule 8(2)(iii) of the Valuation Rules which provides for residual method of determining the value clearly states that no value shall be determined on the basis of the price of the goods on the domestic market of the country of exportation. Carnet value does not constitute assessable value under Section 14 of the Customs Act. - Appeal allowed - Decided in favor of appellants.
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