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2018 (2) TMI 217 - AT - Central ExciseRe-opening of assessment under section 11A - Valuation - the revenue is demanding duty on the basis of transaction value whereas the Respondent has resorted to valuation of goods for the purpose of paying basic custom duty on the basis of FOB value of the like goods being exported by them. Held that: - The Transaction value as per Rule 4 of the Customs Valuation Rules, 1988 is the price of imported goods actually paid or payable for the goods when sold for exports to India adjusted in accordance with Rule 9 of Custom Valuation Rules. However we find that no documents have been relied upon in the show cause notice that the price charged or paid was more than FOB Value. The Respondent has also pointed out that the whole of the details of clearance and prices was submitted by them to the department, however the same has not been relied upon and instead the basis of demand is MRP which nowhere finds favour as basis for demand under Valuation Rules. Further it is not forthcoming from the SCN that the dealer price on which the duty was demanded was the price that was charged by the Respondent from their customers or the customers price was equal to dealers price. Hence we are of the view that since the basis of demand itself is without any basis, the demand is not sustainable. In various judgments, Tribunal and the Apex Court has rejected the price by an EOU to DTA as transaction value and held that the FOB value of exports would be basis for valuation of goods cleared into DTA - thus, the demands against the respondent are not sustainable. Appeal dismissed - decided against appellant-Revenue.
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