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2016 (9) TMI 1118 - CESTAT KOLKATA

2016 (9) TMI 1118 - CESTAT KOLKATA - TMI - Valuation - import of Crystal beads of marquise shaped glass with coating on its back - whether enhancement in declared value has been correctly made and upheld by the lower authorities with respect to glass beads/Chattons imported by the appellant? - Held that:- The customs authorities are bound to assess duty on the transaction value and does not allow the department to ascertain an imaginary value based on the basis of DOV data. Only in exceptions sp .....

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mports of the appellant. There is also no evidence on record whether contemporary imports relied upon by the department are Identical goods or similar goods as defined in Rule 1(c) & 1 (e ) of the Customs Valuation (Determination of Imported goods) Rules 1988. There is thus no reason to doubt the declared/invoice value paid by the appellant - enhancement of assessable value in the present proceedings is arbitrary and not justified. - Appellant has declared the same description what is given .....

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he decision in the case of Eicher Tractors Ltd. Vs. C.C., Mumbai [2000 (11) TMI 139 - SUPREME COURT OF INDIA] followed. - Appeal allowed - decided in favor of appellant. - Customs Appeal No. C/93/2008 - Final Order No. FO/A/76033/2016 - Dated:- 14-9-2016 - Shri H. K. Thakur And Shri P. K. Choudhary, JJ. Sri S.K. Mehta, Advocate For the Appellant Sri S.K. Naskar, A.C. (A.R.) For the Respondent ORDER Per Shri H. K. Thakur This appeal has been filed by the appellant against Order-in-Appeal No.K .....

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aped glass with coating on its back (valued at ₹ 66,600/- CIF) under Section 111 (m) of the Customs Act, 1962 imported by the appellant and allowed redemption on payment of redemption fine of ₹ 4,00,000/-. A penalty of ₹ 2.00 Lakh was also imposed by the Adjudicating authority on the appellant under Section 112 (a) of the Customs Act, 1962. 2. Shri A.K. Mehta (Advocate) appearing on behalf of the appellant argued that though assessable value of the imported glass beads/Chattan .....

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e of glass beadss has been declared as US$12.50 per kg. That as per Directorate of Valuation (D.O.V.) data for the relevant period the value of glass beads ranges from ₹ 9.20/Kg. to ₹ 19069.74 per kg. That when the contemporary value of similar goods shows a huge range than the present consignment cannot be loaded on an imaginary basis when appellant has been allowed clearances at transaction value of other imports before and after the import of present consignment.That appellant s c .....

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ier and no fraud/wilful mis-statement has been made by the appellant. 3. Shri S.K. Naskar, A.C. (A.R.) appearing on behalf of the Revenue argued that the value of the goods imported by the appellant has been enhanced by the lower authorities as suggested by M/s. Swrouski, the report of an authorised valuer of the Govt. of India after verification of the representative samples of imported goods and the contemporary imports made at Chennai. Learned A.R. strongly defended the order passed by the fi .....

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ed for the purpose of assessments. In the present proceedings there is no evidence that the supplier of the impugned goods and appellant are related persons. On this issue Hon ble Apex Court in the case of Eicher Tractors Ltd. Vs. C.C., Mumbai (supra) held as follows: 6. Under the Act customs duty is chargeable on goods. According to Section 14(1) of the Act, the assessment of duty is to be made on the Value of the goods. The value may be fixed by the Central Government under Section 14(2). Wher .....

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here the seller or the buyer have no interest in the business of each other and the price is the sole consideration for the sale. Subject to these three conditions laid down in Section 14(1) of time, place and absence of special circumstances, the price of imported goods is to be determined under Section 14(1A) in accordance with the rules framed in this behalf. 7. The rules which have been framed are the Customs, Valuation (Determination of Price of Imported Goods) Rules, 1988. The rules came i .....

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ear that a mandate has been cast on the authorities to accept the price actually paid or payable for the goods in respect of the goods under assessment as the transaction value. But the mandate is not invariable and is subject to certain exceptions specified in Rule 4(2) namely : (a) there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which - (i) are imposed or required by law or by the public authorities in India; or (ii) limit the geographic .....

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s; and (d) the buyer and seller are not related, or where the buyer and seller are related, that transaction value is acceptable for customs purposes under the provisions of sub-rule (3). 9. These exceptions are in expansion and explicatory of the special circumstances in Section 14(1) quoted earlier. It follows that unless the price actually paid for the particular transaction falls within the exceptions, the Customs authorities are bound to assess the duty on the transaction value. 10. The res .....

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14(1). Rule 4 is in fact directly relatable to Section 14(1). Both Section 14(1) and Rule 4 provide that the price paid by an importer to the vendor in the ordinary course of commerce shall be taken to be the value in the absence of any of the special circumstances indicated in Section 14(1) and particularised in Rule 4(2). 12. Rule 4(1) speaks of the transaction value. Utilisation of the definite article indicates that what should be accepted as the value for the purpose of assessment to custom .....

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allow the department to ascertain an imaginary value based on the basis of DOV data. Only in exceptions specified in Section 14 of the Customs Act, 1962 can the department follow Customs Valuation Rules. In the present proceedings before us supplier of glass beads and importer are not related persons and there is no evidence on record that any amount in excess of what has been declared by the appellant has been repatriated by the appellants. Thus there is no ground for rejecting the transaction .....

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