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2018 (7) TMI 1299 - AT - CustomsValuation of imported goods - Ball Valves - enhancement of value - the Departmental officers were of the view the assessable value should be adopted on the basis of the tariff value of the brass scrap during the period of import by loading the same by 30% as value addition - Rule 8 of the Customs Valuation Rules - Held that:- The assessable value of the imported Ball Valves stands enhanced by the Revenue on the findings that the same is less than even the tariff value of the Brass scrap as notified by the Ministry of Finance for the relevant period of import and the importer has not been able to show the manufacturer’s invoice - Admittedly, the goods stand imported by the appellant from a trader under an invoice reflecting the transaction value of the goods in question. In the present case, the Revenue’s entire case is based upon the fact that the value of the Ball Valves/Check Valves cleared by the appellants under the declared transaction value is less than the value of even the raw material thus leading to a doubt about the correctness of the same - The Lower Authorities have jumped to the provisions of Rule 8 of the Customs Valuation Rule and has ordered value addition of 30%, without exhausting applicability of the previous Rules. Even if there was a doubt about the correctness of the transaction value, the onus was upon the Revenue to re-determine the value in terms of said Rules by applying them sequentially. As such without first exhausting earlier Rules which also include adoption of the transaction value as the assessable value it was not proper on the part of the Revenue to enhance the value. The transaction value has not been rejected by the Lower Authority by production of any positive evidences and the value stands enhanced only on the basis of suspicion and by referring the Tariff Value of the raw materials, there is no justifiable reasons to uphold the impugned order. Appeal allowed - decided in favor of appellant.
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