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TMI Blog2018 (2) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... ces in NIDB data. Adjudication orders on those lines issued by original authority were appealed by the appellants. However, the Commissioner (Appeals) vide impugned orders upheld the orders of original authority. Hence, these appeals filed by M/s Agarwal Foundries Pvt. Ltd. (AFPL). Appeal wise details of O-I-A, Bill of Entry, declared invoice values and enhanced assessable values as submitted by appellants are as under: S.No. Appeal No. Impugned OIA No. Bill of Entry No. Date Invoice value in USD per MT Enhanced value (USD) adopted by Customs per MT 1 C/30995/2016 HYD-CUS-OOO-APP-068 8659316 20.03.15 281 430 2 C/30966/2016 HYD-CUS-OOO-APP-069 9065243 28.04.15 250 430 3 C/30967/2016 HYD-CUS-OOO-APP-070 9065253 28.04.15 250 430 4 C/30968/2016 HYD-CUS-OOO-APP-071 9138273 06.05.15 288 430 5 C/30999/2016 HYD-CUS-OOO-APP-072 8954946 8954981 8955259 9251705 9317279 9317335 18.04.15 18.04.15 18.04.15 16.05.15 22.05.15 22.05.15 250 250 Euro 219 250 235 250 430 430 Euro 401 430 401 130 6 C/31000/2016 HYD-CUS-OOO-APP-073 9152246 9152388 9227670 9227691 9251742 07.05.15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the overseas exporter. iv) Since the production was suffering, the appellant had to clear the imported goods at the higher valuation of USD 430/- and the customs duty on revised valuation was paid 'under protest'. v) The Dy. Commissioner, vide the impugned speaking order, without properly justifying the enhancement of value, confirmed the value at USD 430 per MT. He has not followed the principles of natural justice, nor has he followed the Customs Valuation (Determination of value of imported goods) Rules, 2007. For reliance on NIDB data given in the order as the benchmark, no evidence has been adduced by him. vi) There is no material to the evidence from the Department that the transaction value entered into is not the correct value which stands paid to the overseas exporter. The Department has not come out with any evidence to the effect that the overseas exporter has been paid by higher consideration other than the amount of invoice paid through importer's bank. vii) While NIDB data can be a guideline for the Customs to arrive at the value of the goods, the NIDB data cannot be applied directly, unless the value given therein falls under the parameters of ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssertion has not been disproved or proved incorrect by Customs. 6.4) Department has also not backed up their allegations that the manner of purchase of the impugned goods from the traders and not from manufacturers, is not as per practice normally followed in the course of international trade in the said item. This being the case, we are of the opinion that Department cannot reject the invoices issued by traders the declared import values only for the reason that the accompanying invoices have not been issued by the manufacturers themselves. In any case, in our view, it is not as if the manufacturers concerned have set out or conduct their activities with the sole intention of manufacturing such "shredded scrap". Obviously the impugned goods are but shreds and turnings which have emerge during the manufacture of goods by the concerned manufacture. There can be no dispute that these metal shreds and turnings would not be in very huge quantities vis-a-vis the actual goods manufactured. It also appears to reason that the manufacturers would prefer to dispose of such shredded scrap to the traders instead of expending time and energy selling them directly worldwide. 6.5) Viewed in thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals). Mere reference to Commissioner Mumbai guidelines to enhance the value of ball bearings, without first assessing the quality of the goods is not justified. It stands accepted that the ball bearings were mix and not of uniform sizes. As such, Revenue's appeal has no merits." 6.8) In the case of Topsia Estates Pvt. Ltd Vs. CC (Import-Seaport) Chennai as reported at [2015(330) E.L.T 799 (Tri.-Chennai), the Tribunal held as under: "7. After hearing both sides and on perusal of the records, we find from the adjudication order that the adjudicating authority observed that the unit price declared appears to be very low compared to the contemporaneous import value available in NIDB data. The appellant imported PU Coated Fabrics of various thickness and different qualities from China. It is seen from the Table as reproduced in the adjudication order that the declared unit price varies from 0.90 MT to 1.60 MT and the value was enhanced from 1.24 per MT to 2.04 per MT. We have also noticed that the appellant imported the same goods from Kolkata Port also. The appellant in the written submission before the Commissioner (Appeals) submitted copies of the various orders passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal-Chennai) is appropriate to the facts of the present case. The observation of the Tribunal is as below:- "We find that in the present case, the adjudicating authority enhanced the value as the declared value appears to be very low compared to value available in NIDB data, otherwise, there is no material available. The Tribunal consistently observed that the declared value cannot be enhanced merely on the basis of NIDB data. It is noticed that the value of impugned goods varies widely on the basis of quality, size, quantity, etc., and it is contended by the appellant before the lower appellate authority that the declared value of the same goods were accepted by the 6 Customs Appeals Nos.50503-50504/2017 and 50519-50520/2017 Department at Kolkata Port. We also find force in the submission of the learned Advocate that in this particular situation, Rule 9 of the Valuation Rules would not be invoked." 8. In view of the discussions and analysis, we find that the impugned orders cannot be legally sustained. Accordingly, the same are set aside. The appeals are allowed with consequential relief." 6.10) We find that the above decisions will apply on all fours to the present appeals b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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