TMI Blog2019 (10) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... 50361, 50362, 50374, 50375, 50376, 50377, 50378, 50379, 50380, 50381, 50382, 50383, 50384, 50385, 50386, 50387 And 50388/2019 - FINAL ORDER NO. 51334-51355/2019 - Dated:- 22-10-2019 - HON BLE MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND HON BLE MR. C. L. MAHAR, MEMBER (TECHNICAL) Shri Mrinal Bharat Ram, Advocate for the appellant. Shri Sunil Kumar, Authorised Representative for the respondent ORDER ANIL CHOUDAHRY: The issue in these appeals, filed by the importer-asseessee is whether the Revenue can enhance the declared value of the goods under import, without rejecting the transaction value/declared price, as provided in Section 14 of the Customs Act. 2. The brief facts are that the appellant is, inter alia, engaged in manufacturing aluminium alloys Ingots, falling under HSN Code No. 7601, since 1993. The appellant uses Aluminium scrap as raw material which is imported as well as procured locally. The appellant, on a regular basis, imports aluminium scrap through various ports like ICD Dadri, ICD Palwal, ICD Piyala and ICD ACTL Ballabhgarh. 3. The appellant purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. The Commissioner (Appeals) in relation to the bills of entry impugned in the present set of appeals rejected the appeal filed by the appellant by way of the common impugned order dated 30.08.2018, entirely relying upon the Order-in-Original dated 07.05.2018. 10. Being aggrieved by the impugned order, the appellant has filed the present set of appeals. 11. The Learned Counsel for the appellant urges that the Commissioner (Appeals) have erred in relying upon the order of the adjudicating authority, which was in respect of earlier imports. The adjudicating authority in the earlier order had held the value of the goods cannot be lower than the constituent materials, that there was reason to doubt the truth or accuracy of the value declared by the appellant. He further urges that such logic adopted by the Court, that value of goods cannot be lower than constituent materials, holds goods for the manufactured article, the cost of which in normal circumstances would not be lower than the cost of material (inputs) of which it is made. 12. The counsel wages, aforementioned logic cannot apply in the facts of the appellant s case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 62, and that the declared price can only be rejected with cogent reasons. The Hon ble Supreme Court relied on its earlier order in Commissioner of Customs vs. Prabhu Dayal Prem Chand-2010 13 SCC 535=2010 (253) ELT 353. The finding of the Hon ble Supreme Court is as follows: 10. The law, thus, is clear. As per Sections 14(1) and 14(1A), the value of any goods chargeable to ad valorem duty is deemed to be the price as referred to in that provision. Section 14(1) is a deeming provision as it talks of deemed value of such goods. Therefore, normally, the Assessing Officer is supposed to act on the basis of price which is actually paid and treat the same as assessable value/transaction value of the goods. This, ordinarily, is the course of action which needs to be followed by the Assessing Officer. This principle of arriving at transaction value to be the assessable value applies. That is also the effect of Rule 3(1) and Rule 4(1) of the Customs Valuation Rules, namely, the adjudicating authority is bound to accept price actually paid or payable for goods as the transaction value. Exceptions are, however, carved out and enumerated in Rule 4(2). As per that provision, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 importing Section 14(1A) does not arise. In the absence of such evidence, invoice price has to be accepted as the transaction value. Invoice is the evidence of value. Casting suspicion on invoice produced by the importer is not sufficient to reject it as evidence of value of imported goods. Undervaluation has to be proved. If the charge of undervaluation cannot be supported either by evidence or information about comparable imports, the benefit of doubt must go to the importer. If the Department wants to allege undervaluation, it must make detailed inquiries, collect material and also adequate evidence. When undervaluation is alleged, the Department has to prove it by evidence or information about comparable imports. For proving undervaluation, if the Department relies on declaration made in the exporting country, it has to show how ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... what basis the Assessing Authority could hold that the paid price was not the sole consideration of the transaction value. Since there is no such exercise done by the Assessing Authority to reject the price declared in the Bills of Entry, Order-in-Original was, therefore, clearly erroneous. 16. According, the Ld. Counsel prays for allowing the appeals and setting aside the impugned order in appeal. 17. Ld. Authorised Representative for Revenue relies on the impugned order. Further wages, that the appellant had accepted the enhanced value as assessed by the adjudicating authority and paid the differential duty and also gave the declaration that they waive their right for issue of show cause notice, and after the paying the differential duty wave granted out of charge, by the court below. Further, the bills of entry under dispute were assessed in terms of Circular F No.- BAL/ Tech/36/2016 (AI Scrap) dated 01.12.2016, issued by DGOV, CBED, New Customs House, Mumbai. Further, the value of the goods as declared by the appellant importer, appeared to be on lower side, as compared to contemporaneous imports of identical goods in India, as well as the LME pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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