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2018 (12) TMI 447

Valuation of imported goods - enhancement of value based on DGOV Circular No. Val/Tech/25/2013 dated 07.08.2013 and thereby applying the NIDB data - Held that:- Identical issue decided in the case of M/S. SRR INTERNATIONAL VERSUS COMMISSIONER OF CUSTOMS, MUNDRA [2018 (12) TMI 392 - CESTAT AHMEDABAD], where it was held that The assessable value of the goods i.e. PU Belts is enhanced by the customs authorities mainly on the basis of DGOV Circular, which is not an authority to dispute the valuation .....

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duty at 10.00% CVD at 12% Edu Cess @ 2% HSS @ 1.00% Addi tional duty @ 4% Total amount of duty leviable Duty amount already paid Amount of difference in duty 728616905.11.14 132000 2452560 245256 323738 11380 5690 121545 707609 265767 441842 757438303.12.14 113400 2106972 210697 278120 9776 4888 104418 607900 188271 419629 769674915.12.14 132000 2452560 245256 323738 11380 5690 121545 707609 218801 488808 779813724.12.14 132900 2469282 246928 325945 11457 5729 122374 712433 225051 487382 791583 .....

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rt of PU Belts, investigated the case and applying the NIDB data, enhanced the value of the aforesaid imported goods and demanded differential duty. For confirmation of demand, value of contemporaneous imports and market survey were relied upon. Being aggrieved by the impugned orders, the appellant filed the present appeals. 2. Shri N.D. George, ld. Counsel appearing on behalf of both the appellants submits that an identical case which was made out in the same investigation, in respect of the sa .....

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are more or less same even though minor variation is there. Supplier in all the three cases is also the same party i.e. M/s. Wenzhou Yuanqiao Leather Goods Company Limited, China. We have dealt with identical issue in the case of SRR International and allowed the appeal of the said party vide order dated 04.12.2018 which is reproduced below:- 4. We have carefully gone through the submissions made by both sides and perused the record. We find that the assessable value of the goods i.e. PU Belts i .....

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ant. The Revenue only relied on one Bill which is neither signed nor authenticated hence, the same cannot be relied as market survey report. There is no case of the Revenue that the appellant have made a payment over and above the value declared in their bills of entry/invoices. In similar case, this Tribunal time and again has taken a view that enhancement of the value without proper evidence is not correct and legal. In the case CC, Calcutta vs. South India Television Pvt. Limited (supra), hel .....

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to prove that the apparent is not the real. Under Section 2(41) of the Customs Act, the word value is defined in relation to any goods to mean the value determined in accordance with the provisions of Section 14(1). The value to be declared in the Bill of Entry is the value referred to above and not merely the invoice price. On a plain reading of Section 14(1) and Section 14(1A), it envisages that the value of any goods chargeable to ad valorem duty has to be deemed price as referred to in Sect .....

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ice price is not sacrosanct. However, before rejecting the invoice price the Department has to give cogent reasons for such rejection. This is because the invoice price forms the basis of the transaction value. Therefore, before rejecting the transaction value as incorrect or unacceptable, the Department has to find out whether there are any imports of identical goods or similar goods at a higher price at around the same time. Unless the evidence is gathered in that regard, the question of impor .....

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ceedings. However, even in adjudication proceedings, the AO has to examine the probative value of the documents on which reliance is placed by the Department in support of its allegation of under-valuation. Once the Department discharges the burden of proof to the above extent by producing evidence of contemporaneous imports at higher price, the onus shifts to the importer to establish that the invoice relied on by him is valid. Therefore, the charge of under-invoicing has to be supported by evi .....

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dicates comparable prices of like goods during the same period of importation. This evidence has not been rebutted by the Department. Further, in the present case, the Department has relied upon export declaration made by the foreign supplier in Hong Kong. In this connection, we find that letters were addressed by the Department to the Indian Commission which, in turn, requested detailed investigations to be carried out by Hong Kong Customs Department. The Indian Commission has forwarded the exp .....

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possible that the manufacturer had over-invoiced the price in order to claim more rebate. The goods were of Chinese origin. In the Fax message it is further stated by the foreign supplier that he was required to show the export value on the higher side in order to claim the incentives given by his Government. This explanation of the foreign supplier, in the present case, had been accepted by the Commissioner. In his order, the Commissioner has not ruled out over-invoicing of the export value by .....

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rice stood deferred. Therefore, this decision of the Supreme Court directs the Revenue to decide the validity of the particular value instead of rejecting the transaction value. We wish, however, to clarify that it is still open to the Department based on evidence, to show that the declared price is not the price at which like goods are sold or offered for sale ordinarily, which words occur in Section 14(1). Lastly, it is important to note that in the above decision of this Court in Eicher Tract .....

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of arriving at the assessable value of the imported goods. According to him the value declared by the appellants was very low. Hence the same could not be accepted as per rule 4 of the Customs (Valuation) Rules, 1988. Since the goods imported are of various countries origin and brand and no identical imports have been noticed during the relevant period, the value could not be determined under Rule 5 and 6 of the Customs (Valuation) Rules. No data was available for duty paid imports or for condit .....

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. The market enquiry report is also not available in the records for our perusal. Simply on the basis of the appellants acceptance of the enhanced value when his statement was recorded, enhancing the assessable value without adhering to the principles of natural justice cannot be sustained. The vague assertion that market enquiries have been made without indicating the details of the same and fixing the duty liability on the importer on the basis of the same cannot be accepted. In view of the ab .....

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Inasmuch as the said Circular was issued on the basis of average cost of raw material in the international market as well as on the basis of inputs provided by various importers, associations of manufacturers and traders, All India ball bearings, merchant associations, the floor prices were fixed accordingly. Having gone through the impugned orders, we find that the Revenue has solely relied upon the said Circular issued by the Commissioner of Customs. There is no other evidence to reject the t .....

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order by the department. 7. As per our above discussions, in our considered views the enhancement of the value as held by the lower authorities, is not sustainable. Accordingly the impugned order is set-aside and the appeal is allowed. 5. From the above order, it can be seen that the goods in the present two appeals as well as in the appeal disposed by the above mentioned order, are absolutely identical. Therefore, there is no need to give the findings again on the identical facts. Therefore, fo .....

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