TMI Blog2018 (10) TMI 1258X X X X Extracts X X X X X X X X Extracts X X X X ..... - The law has been settled that onus to prove that the declared price did not reflect the true transaction value is always on the Department and that Department is bound to accept the transaction value entered between the two parties, unless and until, Department has a cogent evidence that identical or similar goods were imported by other importers at higher price. It is an admitted fact that appellant’s/ importer’s relationship with foreign suppliers was previously examined in terms of SVB order dated 09.03.2011. After the expiry of subsequent three years, the importer provided detailed information about itself as well as about the foreign suppliers in the requisite format - It becomes clear that the requirements for Rule 3(3) of the Va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was done vide Order No. 6112 dated 24.02.2015 by Deputy Commissioner, Customs, New Delhi holding that the importer and foreign supplier are related persons and that the invoice value of the goods imported by the importer from foreign suppliers is not influenced by their relationship. Resultantly, the said Order, confirmed the earlier Order of 09.03.2011 as renewed. However, Commissioner Customs General vide his review order No. 25/2015 had directed for filing Appeal with Commissioner(Appeals), Customs in this matter on the ground that Adjudicating Authority has merely relied upon the declaration made by the importer and no other data has been verified before reaching the conclusion. The said Order was held to be a non speaking order. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... compared any other data due to which the same is a non speaking order. It is also impressed upon that the Adjudicating Authority was aware of the relationship between the importer as well as the foreign supplier. Hence, an elaborate discussion was required. The same, since was missing, the order under challenge is justified, Appeal accordingly is prayed to be dismissed. 5. After hearing both the parties, we are of the opinion that prior adjudicating the controversy, the law applicable to the aspect is important to be looked into. Section 14 of the Customs Act: 5.1 Section 14 of the Customs Act provides the methodology for valuation of imported goods which specifies that in situations where the buyer and seller are not related, the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties did not influence the price of the imported goods; OR (ii) The importer demonstrates that the declared value of the goods closely approximates the transaction value of identical or similar goods in sales between unrelated parties, or the deductive value for identical or similar goods, or the computed value for identical or similar goods. 5.6 As discussed above in our first ground of appeal, Rule 3(1), Rule 3(2) and Rule 3(3) are intrinsically linked and provide for a mechanism to determine the acceptability of the transaction value for related party imports. Therefore, it is evident that the proper officer is first required to ascertain that the transaction value cannot be determined under Rule 3 before proceeding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een settled that onus to prove that the declared price did not reflect the true transaction value is always on the Department and that Department is bound to accept the transaction value entered between the two parties, unless and until, Department has a cogent evidence that identical or similar goods were imported by other importers at higher price as it was held by Supreme Court in the case Commissioner of Customs, Mumbai Vs. Prodelin India Limited 2006 (202) E.L.T. 13 (S.C.). In another case titled Commissioner of Central Excise, Rohtak Vs. Sai Sales Corporation 2012 (278) E.L.T. 197 (Tri.-Del.) has held that mere suspicion cannot be used to reject the declared value and proceed for valuation under alternative valuation methodologies p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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