Home Case Index All Cases Customs Customs + AT Customs - 2022 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (2) TMI 370 - AT - CustomsUndervaluation of imported goods - Paper Cup machines and Blankets - rejection of transaction value - redetermination of value - admissible evidence or not - documents in the form of computer printouts / extracts of WhatsApp messages/ images and load port documents/papers submitted by the shipping agents - Confiscation - penalty - HELD THAT:- There is difference in the models as mentioned in the proforma invoices and the commercial invoice, Learned Adjudicating authority proceeds to confirm the value reflected in the proforma invoice, relying on the statement dt. 20.6.2017 of Shri Raghuveer Swamy (an outsider). It is found further that the Learned Commissioner takes a peculiar stand that nevertheless, once the notice is issued alleging such a serious charge based on certain sets of evidences, the onus to prove otherwise shifts upon the importer and they were under obligation to rebut the allegation with cogent documentary evidence to substantiate their claim and corroborate with evidence, which they have failed to do. Rather, importer has questioned the allegation and evidences on mere technical grounds. The argument by the adjudicating authority is not only specious but also not legally tenable. The allegations, if any, have to be proved by the Revenue authorities alleging the same. It is incorrect to say that the appellant has to disprove the allegations with cogent evidence. Such an argument runs against the settled position of law and as such the same is not acceptable. The Courts and Tribunals have consistently held that proforma invoices cannot be evidence, at least in themselves. What is material is the transaction value. Revenue is required to prove with evidence that the payments over and above, the price reflected in commercial invoices are actually made. In the instant case the same is absent - the adjudicating authority himself observes that there is a difference in the particulars mentioned in proforma invoice, and the invoices submitted along with bills of entry. In the instant case, the investigation has revealed the actual transaction value based on cogent evidences. Therefore, the actual price taken being the transaction value under Section 14 of the Customs Act, 1962, we find that the observations of the Learned Commissioner are very curious. Once the goods are assessed and cleared, there was no reason for rejecting the declared value and redetermining the same following the CVR, 2007 sequentially. First of all, the declared transaction value needs to be rejected and the value requires to be redetermined in terms of CVR, 2007, and it was incumbent upon the investigation and the adjudicating authority to show reasons for rejection of the declared assessable value and the results as to how the price adopted for rejecting the value is determined. This is a settled principle of valuation as held by this Tribunal as well as various Courts. The show cause notice and the OIO are not maintainable and that the OIO is liable to be set aside - Appeal allowed - decided in favor of appellant.
|