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2022 (8) TMI 721 - AT - CustomsValuation of imported goods - Integrated Circuits - declared assessable value was rejected without giving any cogent reasons and the valuation was arrived at on the basis of the another bill of entry of the appellant holding that the goods are identical - assessment of Bills of Entry in question as per Section 17(5) of the Customs Act, 1962 - opportunity of personal hearing was accorded to the appellants or not - HELD THAT:- The department has not given any cogent reasons for rejection of the declared value, except stating that the appellants have imported identical goods in the past at a higher price. Nothing is forthcoming in the impugned orders as to how they constitute identical goods except for the description. We find force in the contention of the appellants that the description IC is a generic one. The department has not obtained any technical opinion on the impugned goods so as to examine the identical nature of the products. Department has not even alleged that there was flow of extra consideration, than the declared value, form the appellant to the overseas supplier, leave alone any evidence to that effect. Moreover, there are force in the argument of the appellants that the quantity imported is not comparable. Department is attempting to compare the value at which 23750 Nos of ICs were imported, with the value at which a meagre 13 Nos were imported vide another B/e. Department overlooked the very common principles of business that the price is dependent on volumes. Therefore, we find that the invocation of, Rule 4 of CVR, 2007, after rejecting the declared value under Rule 12 ibid, though for no cogent reasons, is not legally sustainable. The ultimate use of the imported goods cannot be criteria for deciding the valuation. Every business man is free to adopt his own way of conducting business. In any case, this cannot be reason for rejecting the value of the impugned goods. In the absence of any technical opinion obtained, comparing the impugned goods with other goods, simply on the basis of description, is not acceptable. Moreover, as per Rule 4 of CVR, 2007 the transaction value of identical goods in a sale at the same commercial level and in substantially the same quantity as the goods being valued shall be used to determine the value of imported goods - In the instant case, the comparison of the quantities, betrays a complete mismatch. Therefore, the valuation arrived on the basis of so called identical goods is not legally sustainable. The department has not made any case for rejection of the value declared by the appellants in the impugned Bill of Entry - Appeal allowed - decided in favor of appellant.
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