Home Case Index All Cases Customs Customs + AT Customs - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 712 - AT - CustomsValuation of imported goods - undervalued goods or not - Raw Silk Yarn in hanks - rejection of declared value - allegation based on contemporaneous import prices of similar goods of same description - re-determination of the transaction value is in accordance with the provisions of Section 14 of the Customs Act 1962 read with the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 or not? - allegation of mis-declaration against the importer is justifiable or not - Confiscation - penalty. HELD THAT:- In order to examine the issue of under-valuation of the imported goods, we find it enlightening to refer to the Hon’ble Supreme Court’s analysis of the statutory provisions relating to valuation under the Customs Act, 1962 in the case of CENTURY METAL RECYCLING PVT. LTD. AND ANOTHER VERSUS UNION OF INDIA AND OTHERS [2019 (5) TMI 1152 - SUPREME COURT] where it was held that Declared valuation can be rejected based upon the evidence which qualifies and meets the criteria of ‘certain reasons’. Besides the opinion formed must be reasonable. Reference to foreign journals for the price quoted in exchanges etc., to find out the correct international price of concerned goods would be relevant but reliance can be placed on such material only when the adjudicating authority had conducted enquiries and ascertained details with reference to the goods imported which are identical or similar and ‘certain reasons’ exists and justifies detailed investigation. It is found that the original adjudicating authority has rejected the declared transaction value in terms of Rule 12 of the Customs Valuation Rules, 2007 basing on the assessable value of identical goods imported vide Bill-of-Entry No. 699388 dated 25.11.2010, which was proposed to be adopted as the transaction value under Rule 4 of the Customs Valuation Rules, 2007 - The declared value of the impugned consignment, which was said to be based on the said contract, was rejected as not representing the actual transaction value contemplated in Rule 3 of the Customs Valuation Rules, 2007 and the contract was found to be extraneous to the transaction between the importer and the supplier on account of non-fulfilment of the conditions of the said contract. The Ld. adjudicating authority has communicated the basis for enhancement of the transaction value to the importer relying on the contemporaneous import of Silk Yarn of Uzbekistan origin vide Bill-of-Entry No. 699388 dated 25.11.2010 at USD 28.5 per kg., but it has to be commented that the crucial commercial details of this consignment as to the type, quality, quantity imported, whether under any contract, whether any advance paid, etc., are not ascertainable from the records in these appeals. There was no discussion either by the original adjudicating authority or by the lower appellate authority in this regard. Thus, there is no finding as to how this consignment was considered as contemporaneous import of identical goods in terms of Rule 4 of the Customs Valuation Rules, 2007. Thus, there is no valid reason to reject the declared transaction value of the goods. The transaction value, as declared by the importer-respondent, accepted. As earlier imports of the respondent were cleared accepting the values declared and also since the value of the contemporaneous import of identical goods has not been conclusively arrived at by the lower adjudicating authority, the declared transaction value has to be accepted. Hence, there is no need to pass any order in respect of confiscability of the goods or on imposition of penalty. The appeals filed by the Revenue are rejected.
|