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2017 (8) TMI 52 - HC - VAT and Sales TaxValuation - Cardamom - proceedings in the instant case have been initiated on the premise that value of goods being imported was more than ₹ 1200-1300 per Kg. in the market at Lucknow and Kanpur, whereas value of big cardamom was disclosed at ₹ 160 per Kg - Held that: - As would be clear from the provisions contained under Section 48(1)(iii) and 48(5), as also under Section 54(1)(21-B), in case the allegation of undervaluation was levelled, the determination of rate/price to ascertain undervaluation had to be with reference to the market rate prevalent in the local market where the transaction itself had taken place. This Court finds substance in the submission that rate in the local market has not been ascertained nor has been relied upon for the purposes of determining the question of undervaluation. Action under Section 54(1)(21-B) - Held that: - The order of penalty is not sustainable for the reason that the penalty order transgresses the authority invoked while issuing notices under Section 54(1)(14) and as notices had not been issued calling for explanation of the revisionist under Section 54(1)(21-B) of the Act, the penalty order is not sustainable. So far as the question with regard to determination of undervaluation is concerned, also it is found that market rate relied upon for the purposes of undervaluation is not the market rate shown to exist in the market area, where the transaction itself has taken place. Appeal allowed - decided in favor of appellant.
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