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2022 (3) TMI 1227 - AT - CustomsValuation of imported goods - LED panel - rejection of declared value - enhancement of assessable value - restriction on importation conflate - Confiscation of goods - breach of specification of standards or not - HELD THAT:- It would appear that the present proceedings must determine breach, if any, of certification standards which, admittedly, had ceased to be of import by the time of issue of show cause notice, the appropriate approach to the dispute over valuation of goods imported against 16 bills of entry and the correctness in inclusion of the value of the invoice for services in the assessable value of the goods. On the valuation of goods imported against 16 bills of entry, the show cause notice had proposed that the stream of fixed returns incorporated in the ‘Collaborative Framework Agreement (CFA)’ be adopted as the assessable value. Even if the submission on behalf of the appellant that the said agreement had been voided by inability of the overseas entity to supply the goods specified therein were to be ignored, the scheme of valuation under section 14 of Customs Act,1962 cannot be for it is the transaction value, and the transaction value alone, as declared in the bill of entry that is assured of acceptance for assessment except for varying from the qualifying circumstances therein as well as in rule 3 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. There is no finding, either of additional payments having been made as consideration or of the value not being in conformity with the parameters therein, for rejection of rule 12 of the Rules to warrant resort to the sequential application of the several methods in the Rules. The impugned order has relied upon a pro forma invoice as rationale for the enhancement. That may have sufficed for re-determination of transaction value after rejecting declared value. However, the provisions for inclusion of ‘cost of services’ are a special law within the Rules which require ascertainment per the circumstances in rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. There is no such determination in the impugned order and the enhancement of assessable value is, thereby, tainted. The impugned goods are not in breach of certification standards and the onus for disturbing the transaction value in 16 bills of entry as well as the value of goods in the other consignment has not been duly discharged. The confiscation is set aside along with confirmation of demand of differential duty - Appeal dismissed - decided against Revenue.
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