2000 (5) TMI 447 - AT - Customs

Summary

Issues: Valuation of imported goods, principles of natural justice, application of Customs Act and Valuation Rules, adherence to legal procedures

In this case, the appellants imported second-hand machinery and declared a value on the Bill of Entry, which was unilaterally raised by the assessing authorities without granting them a hearing. The Commissioner (Appeals) remanded the case for re-consideration due to the violation of principles of natural justice and lack of clarity in the loading of declared value. The Assistant Commissioner upheld the loaded valuation based on guidelines without specifying the reference numbers, leading to an appeal to the Commissioner (Appeals) again. The Commissioner affirmed the lower authority's valuation method, emphasizing adherence to rules and rejecting the appeal.

The Tribunal expressed surprise at the authorities' handling of the case, emphasizing the importance of principles of natural justice in departmental adjudication. The law on valuation of imported goods under the Customs Act, particularly section 14, requires explanation of reservations on transaction value to importers and a sequential application of Valuation Rules if the claimed value is disputed. The Tribunal referenced specific judgments to support its view on valuation methods for imported goods, highlighting the need for a reasoned approach and consideration of assessees' submissions.

Additionally, the Tribunal acknowledged the applicability of rule 4 for second-hand goods based on precedent and referenced a Supreme Court judgment on the application of rule 8. It criticized the lack of attention to importers' submissions by the authorities and directed the proceedings to be remitted back to the Assistant Commissioner for a thorough reconsideration. The Tribunal stressed the importance of a well-reasoned speaking order, including consideration of cited judgments and importers' submissions, within a specified timeframe. The judgment was to be communicated to the Chief Commissioner of Customs, Mumbai for information.