TMI Blog2016 (1) TMI 425X X X X Extracts X X X X X X X X Extracts X X X X ..... comparable to the value declared at the time of filing Bill of Entry for sale of the cars imported under Carnet, there is no justification to take the higher value mentioned in the Carnet. The appellant gave specific Bills of Entry Nos. 543752, 541155, 510318 under which contemporaneous imports were made assessed to duty on provisional basis as the valuation of the cars was being examined by Special Valuation Branch (SVB), Mumbai, the lower authorities ignored this aspect and did not allow the provisional assessment on similar basis in the case of the cars imported under Carnet. In any case it is shown by the Ld. Advocate that the SVB Order did not establish that the value between appellant and their Principal had influenced the price and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the Government on 9.4.2002. Bills of Entry No. 86, 87 88 all dated 20.5.2002 were filed. The value declared on the Bills of Entry was substantially lower than that on the Carnet document. The adjudicating authority ordered the assessable value to be taken as Carnet price + Insurance + Freight + Landing Charges. Before the Commissioner (Appeals) the appellant also pleaded that since their case is under investigation by SVB Mumbai in respect of other cars imported, the lower authority ought to have permitted provisional clearance after acceptance of 1% Revenue deposit. However their pleas were rejected and the Commissioner upheld the order of the adjudicating authority. 3. Heard both sides. 4. The plea of the Ld. Advocate is tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 157/90-Cus dated 28.3.1990. Normally, the goods have to be exported within six months. But during the relevant time sale of such goods was permitted on payment of Customs duty with prior approval of the Government of India. This permission was obtained by the appellant who had bought the cars from M/s. Daimler Chrysler AG, Germany who initially imported the cars under ATA Carnet. The question which arises is what value is to be taken for purposes of assessment to duty on the sale of the cars. The department has relied on the value declared in the Carnet. But the Carnet Form, which acts as a substitute for Bill of Entry at the time of import under Carnet, clearly states that the value declared in the form is the commercial value in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. In the present case even though buyer and seller are related it is established by the SVB order that the price has not influenced the relationship. Therefore, the transaction value cannot be rejected. Revenue rejected the transaction value on the basis that the value declared in the Carnet is much higher. We find that Rule 8(2)(iii) of the Valuation Rules which provides for residual method of determining the value clearly states that no value shall be determined on the basis of the price of the goods on the domestic market of the country of exportation. In the present case the Carnet Form clearly declares the value to be commercial value in the country of its issue, which is Germany in the present case. Therefore, it is clear that the Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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