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2020 (12) TMI 804 - AT - CustomsPrinciples of natural justice - gist of submissions by the learned counsel for the appellants are that the department did not consider their submissions in entirety - Valuation of imported goods - related party or not - time limitation - HELD THAT:- The original authority as well as the appellate authority have gone only on the basis that the buy and seller are related in terms of Rule 2(2) of CVR, 1988 and proceed to judge transactions in terms of 4(3)(a) and 4(3)(b) ibid. The original authority has given a finding that that the onus to prove that their relationship has not affected the pricing lies on the importer in terms of the rules cited above. This is not the correct proportion of law - In terms of Rule 3(a) of CVR, 1988, where the buyer and seller are related, the transaction value shall be accepted provided that the examination of the circumstances of the sale of the imported goods indicate that the relationship did not influence the price. Neither the original authority nor the appellate authority have given reasons to hold that the relation has indeed affected the price. In case, the department did the same, then the onus would have been transferred to the importer - proviso under Rule 3(a)(b) states that provided that in applying the values used for comparison, due account shall be taken of demonstrate a difference in commercial levels, quantity levels, adjustments in accordance to provision of Rule 9 of these Rules and cost incurred by the seller in sales in which he and the buyer are not related. The submissions of the appellants were required to be considered and reasons, if any, for rejecting the same should have been recorded. It was found that no discussion and findings have been given by both the authorities on the Annexures-B, C, D submitted by the appellants. Time Limitation - HELD THAT:- The appellants have taken inordinate time to submit reply to the questionnaire given by Revenue to them in 2003. Department has also not adhered to the time frame given vide CBEC circular 11/2001. In the end there was rush to complete the proceedings. Learned counsel for the appellants submits that no clarification whatsoever was sought from the Appellant as to the relevance (or otherwise) of the Chemical Weekly Report before proceeding to rely on the Report; no opportunity of hearing in this regard was given to the Appellants - the submissions of the appellant have not been considered. Under the circumstances, the case needs to go back to the original authority for a proper examination of all the facts of the case, the submissions of the appellants including case law in this regard and to pass a speaking and reasoned order as per law. Appeal allowed by way of remand.
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