TMI Blog2003 (8) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... F. No. File CFS/CUS/00641/00-01/660, dated 17-9-2001 In respect of the first consignment covered by the Show Cause Notice at Sl. No. (i) above, besides valuation, the issue of confiscation of goods under Section 111(d) of the Customs Act was also raised. It was alleged that condition 4(c) of DGFT Notification 27(RE 2000) 1997-2000 was not complied inasmuch as the contracts were not registered prior to the imports. The other issue in all these three show cause notices, to invoke the consequences of confiscation under Section 111(m) was alleged misdeclaration in respect of value. The values declared were proposed to be enhanced to US $ 1200 PMT (CIF) from those as declared in the Bills of Entry and a penalty under Section 112(a) was propo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Public Ledger, UK and also on the basis of verification of the market prices for similar white poppy seeds. Therefore, the noticees proceeded after rejecting the transaction value under Rule 10A as sought to re-determine the values under Rule 8 read with Rule 7 of Customs Valuation Rules, 1988 at the previously determined value of similar poppy seeds imported through Nhava Sheva, JNPT Custom House at US $ 1200 PMT. While accepting the clarification produced by the importer that Spice Market Weekly is published by the Spices Board by obtaining international prices of poppy seeds and considering the e-mail reply produced from Public Ledger, UK , that they also quote the price of blue poppy seeds as was done in Spice Market Weekly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e arrived in the study report by flexible application of deductive value method in terms of Rule 8 read with Rule 7A would provide sufficient ground to reject the transaction value under Rule 10A the show cause notice does not reveal any importation of identical or similar goods at a higher price so as to invoke Valuation Rules 5 or 6 and Rule 7 provides the deductive value method, and with that method the study report has applied and arrived at CIF value of US $ 1339 PMT (CIF) for white poppy seeds, by flexible application of deductive value method of Rule 7 by virtue of Rule 8 of Customs Valuation Rules, the contemporaneous importations of Turkish white poppy seeds at Nhava Sheva port and CFS, Mulund have been assessed at a value of US $ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the value of such imported goods cannot be determined under the provisions of sub-rule (1) of Rule 4. (2) At the request of an importer, the proper officer, shall intimate the importer in writing, the grounds for doubting the truth or accuracy of the value declared in relation to goods imported by such importer and provide a reasonable opportunity of being heard, before taking a final decision under sub-rule (1). provides for a procedure which has to be complied with. In this case, procedure as prescribed vide Rule 10A(1) has not been complied with. Therefore, resort to Rule 10A cannot be upheld. (b) The Tribunal in the case of Venus Insulation Products Manufacturing Co. v. CC, Goa [2002 (143) E.L.T. 364 (Tri. - Del)] have held in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceptions, the case will go out of the purview of Rule 4(1) and, in that case, the transaction value shall be determined by proceeding sequentially through Rules 5 to 8 as prescribed under Clause (ii) of Rule 3. Rule 8 is the residuary provision under this scheme. Rule 9 provides for certain additions to the price actually paid or payable, to arrive at the assessable value. Rule 10 casts an obligation on the importer to declare the details of the value of the goods accurately as also to furnish such document or information as may be required by the proper officer for determination of the assessable value. Rule 10A is extracted below : - Rejection of declared value. - (1) When the proper officer has reason to doubt the truth or accuracy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s worked itself out. Thereafter, the Tribunal held that what was open to the proper officer under Rule 10A was to question the accuracy of the price of the goods mentioned in the documents and without arriving at any good reason for doubting the truth or accuracy of the same, not to reject the transaction value under Rule 4(1). It was not open to the Customs authorities to rely on general quotations and mere production of price list to discharge the onus cast on them to prove the existence of circumstances indicated in Section 14(1) of the Customs Act and provisions in Rule 4(2) of the Valuation Rules, resorted to rejection of the transaction value and/or the provisions of Rule 10A. Following this decision of the Tribunal, in this case a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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