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2023 (6) TMI 712 - CESTAT CHENNAIOver-Valuation of goods - Referring the matter to the Valuation Committee for re-fixing of the transaction -export of 100% Cotton Woven / Knitted T-Shirts under duty drawback scheme - value declared at higher transaction value - re-determination of the transaction value by by the Valuation Committee in terms of Rule 4 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 - HELD THAT:- There are no justifiable reasons, in the first place, for the rejection of transaction value by the Revenue. When, admittedly, the transaction value is not rejected specifically, then it is for the Revenue to justify for not accepting the transaction value which is declared and secondly, what prompted the Revenue to refer to the Valuation Committee to refix the transaction value is also not forthcoming from the orders of the lower authorities - the mandate of Rule 8 is not a mere formality i.e., the rejection of declared value is not a mechanical process and the proper officer should have “reason” to doubt the truth or accuracy of the declared value. If he entertains any doubt, then the immediate follow-up action, as prescribed under Rule 8, is to put across the same to the exporter asking it to “furnish further information including documents or other evidence”. Without following the mandate of Rule 8, the officer has referred to the Valuation Committee and it is not the case of the Revenue that the Valuation Committee comprised experts in the field, but the said committee comprised only the departmental officers who are naturally interested. There is also no finding by the lower authority that the parties are related in any way and hence, the adjudicating authority should have looked into Section 14 ibid., which is also not done - there are nothing in either of the orders of lower authorities that on what basis did they arrive at the conclusion that the transaction value declared was abnormal or very much high. Mere allegation would not suffice the requirement of law, what is essential is some semblance of evidence to justify such allegation. The action of the authorities in referring to the Valuation Committee for re-fixing of the transaction value is without basis and the denial of appropriate duty drawback to the appellant was also not in accordance with the principles of law - Appeal allowed.
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