TMI Blog2018 (7) TMI 1299X X X X Extracts X X X X X X X X Extracts X X X X ..... turer’s invoice - Admittedly, the goods stand imported by the appellant from a trader under an invoice reflecting the transaction value of the goods in question. In the present case, the Revenue’s entire case is based upon the fact that the value of the Ball Valves/Check Valves cleared by the appellants under the declared transaction value is less than the value of even the raw material thus leading to a doubt about the correctness of the same - The Lower Authorities have jumped to the provisions of Rule 8 of the Customs Valuation Rule and has ordered value addition of 30%, without exhausting applicability of the previous Rules. Even if there was a doubt about the correctness of the transaction value, the onus was upon the Revenue to re- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifferential duty on provisional basis as calculated by the officers. Subsequently, the Departmental officers were of the view the assessable value should be adopted on the basis of the tariff value of the brass scrap during the period of import by loading the same by 30% as value addition. 2. On this basis, a show cause notice was issued to the appellant for recovery of differential customs duty of ₹ 11,54,380/- under Section 28 (1) of Customs Act, 1962 and also for imposition of penalty under Section 114A on the Appellant firm and imposition of penalty under Section 112 on Shri Anurag Singhal, Proprietor of the appellant firm. The show cause notice also proposed appropriation of an amount of ₹ 1,16,487/- paid by the appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. from the brass scrap; that in terms of Rule 3 of the Customs Valuation Rules, 2007, subject to Rule 12, the value of the imported goods shall be the transaction value adjusted in accordance with the provisions of Rule 10 and such transaction value shall be accepted and that if the transaction value cannot be determined under Rule 3 (1), the same shall be determined by proceeding sequentially through rule 4 to Rule 9, that in this case no attempt had been made by the Department to determine the transaction value on the basis of contemporaneous import price of identical goods or similar goods in comparable quantity, that the Department cannot directly jump to Rule 8 providing for determination of transaction value based on the computed va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported Ball Valves stands enhanced by the Revenue on the findings that the same is less than even the tariff value of the Brass scrap as notified by the Ministry of Finance for the relevant period of import and the importer has not been able to show the manufacturer s invoice. Admittedly, the goods stand imported by the appellant from a trader under an invoice reflecting the transaction value of the goods in question. As per the settled law the transaction value, though not sacrosanct, as observed by the Hon ble Supreme Court in the case of South India Television (P) Ltd, 2007 (214) ELT 3 (SC), has to be accepted as the correct assessable value unless the same is rejected or proved to be incorrect by the department by giving the cogent reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ules which also include adoption of the transaction value as the assessable value it was not proper on the part of the Revenue to enhance the value. 8. Learned Advocate appearing for the appellant has placed strong reliance on various decisions of the Commissioner (Appeals) in respect of identical imports made by the other importers wherein the identical addition of 30% in the value of the goods stands set aside by the Authority. Reference is made to Order-In-Appeal No. 384 (Adj Imp)/2016 (JNCH)- Appeal-II dated 19.08.2016 passed in the case of M/s Bageshwari International. The identical issue stands discussed by the Commissioner (Appeals) and enhancement stands set aside. It is not shown to us that the said order of Commissioner (Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es declared by the importer in respect of imported Mini-valve-(Zinc) were rejected by the Revenue on the ground that the same was even less than the Tariff Value of the Brass Scrap/LME price of Zinc. The Tribunal by relying upon the precedent decision set aside the same. 10. Inasmuch as in the present case also, the transaction value has not been rejected by the Lower Authority by production of any positive evidences and the value stands enhanced only on the basis of suspicion and by referring the Tariff Value of the raw materials, we find no justifiable reasons to uphold the impugned order. 11. Accordingly, the same are set aside and the appeal is allowed with consequential relief to the appellant. ( Pronounced in Court on 17/07/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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