2008 (1) TMI 192 - AT - Customs

Valuation of imported goods Intel DOT station - price declared by the importer is based on the invoice and there is no material evidence to show that the invoice is either fake or the amount has not been sent through proper banking channel - We agree with the appellant that the circumstances enumerated in Rule 4(2) CVR have not been mentioned in the impugned orders TV not rejectahble hence value declared by the appellants at 61 per piece should be accepted

Summary

Issues: Valuation of imported goods, application of Customs Valuation Rules

In this case, the appeals were filed against two Orders-in Appeal related to the valuation of imported goods. The first appeal pertained to the import of 10 systems, while the second appeal concerned the import of 100 systems. The declared value of the goods was US $61 C & F per system as per the supplier's invoice. However, the authorities rejected this value and enhanced the price to US $85 per system for both cases. The appellants contested this decision, arguing that the Customs Valuation Rules were not properly applied, and the value should remain at US $61 per piece. The lower authority had justified the increase in value based on offer prices for larger quantities, but the appellants maintained that the declared value should be accepted. After careful consideration, the Tribunal found that there was no evidence to discredit the invoice value, and the circumstances outlined in Rule 4(2) of the Customs Valuation Rules were not addressed by the lower authorities. The Tribunal agreed with the appellants that the transaction value should be accepted, considering the possibility of price negotiation and the fluctuating nature of computer item prices due to advancements in technology. Relying on relevant case laws presented by the appellants, the Tribunal set aside the impugned orders and allowed the appeal, directing that the declared value of US $61 per piece be accepted for both cases.