TMI Blog2020 (2) TMI 966X X X X Extracts X X X X X X X X Extracts X X X X ..... that the transaction value of such imported goods cannot be determined under the provisions of Sub Rule 1 of Rule 3 . In the instant case the Commissioner finds that it is a well established principle that once a discrepancy has been noticed in respect of description particulars, the onus of proving correct values shifts from revenue to the importer. Learned Commissioner proceeds on the value appearing in the proforma invoice and applied the same to the impugned case in terms of Rule 3 (1). However it is pertinent to note that under Rule 12 in case the officer has a doubt about the truth or accuracy of the declared value etc., the value cannot be determined under the provisions of sub-rule 1 of Rule 3 of CVR 2007. The adjudicating authority is required to give his findings after properly evaluating the evidence on record and the provisions of law. He can not arbitrarily jump to the provisions of CVR, 2007, without rejecting the transaction value declared in terms of Section 14 of Customs Act, 1962 - Having given the findings that the value declared under Section 14 is not correct due to the misdeclaration, the learned Commissioner has no scope to determine the value under R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with Bill of Entry documents like owner s manual, builder s certificate and EC type examination certificate issued by Royal Institute of Naval Architects; these documents clearly indicate that Azimut 68 Evolution due to mis-match in the description the yacht was personally assessed and sought to be finalized by the show cause notice. Learned Counsel for the appellant submits that their bonafide are established as the have submitted documents indicating the actual description of the yacht; therefore no mis-declaration can be alleged; the value declared by them was correct and was the amount paid to the foreign supplier. Therefore, re-valuation of the goods was not correct. The learned counsel submits that while rejecting the declared value under Rule 12 of the Valuation Rules, Commissioner has re-determined the same under Rule 3(1) of Customs Valuation Rules instead of proceeding from Rules 4 to 9 of Valuation Rules in terms of Sub-Rule 1 (1) of Rule 12 and Rule 3 (4) of Customs Valuation Rules, 2007. Learned counsel also submits that they have given elaborate submissions on the Valuation Rules but the learned Commissioner has not discussed any of their submissions and has no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an importer, the proper officer, shall intimate the importer in writing the grounds for doubting the truth or accuracy of the value declared in relation to goods imported by such importer and provide a reasonable opportunity of being heard, before taking a final decision under sub-rule (1). Explanation: (1) for the removal of doubts, it is hereby declared that:- (i) This rule by itself does not provide a method of determination of value, it provides a mechanism and procedure for rejection of declared value in cases where there is reasonable doubt that the declared value does not represent the transaction value; where the declared value is rejected, the value shall be determined by proceeding sequentially in accordance with rules 4 to 9. (ii) The declared value shall be accepted where the proper officer is satisfied about the truth and accuracy of the declared value after the said enquiry in consultation with the importers. (iii) The proper officer shall have the powers to raise doubts on the truth or accuracy of the declared value based on certain reasons which may include (a) the significantly higher value at which identical or similar goods imported at or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a; (ii) the deductive value for identical goods or similar goods; (iii) the computed value for identical goods or similar goods: Provided that in applying the values used for comparison, due account shall be taken of demonstrated differential in commercial levels, quantity levels, adjustments in accordance with the provision of rule 10 and cost incurred by the seller in sales in which he and the buyer are not related; (c) substitute values shall not be established under the provisions of clause (b) of this sub-rule. (4) If the value cannot be determined under the provisions of sub-rule(1), the value shall be determined by proceeding sequentially through rule 4 to 9. RULE 10 Cost and services: (1) In determining the transaction value, there shall be added to the price actually paid or payable for the imported goods.- (a) the following to the extent they are incurred by the buyer but are not included in the price paid or payable for the imported goods, namely:- (i) commissions and brokerage, except buying commissions; (ii) the cost of containers which are treated as being one for customs purposes with the goods in question; (iii) the cost of pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ost shall be twenty per cent of the free on board value of the goods: Provided further that where the free on board value of the goods is not ascertainable but the sum of free on board value of the goods and the cost referred to in clause (b) is ascertainable, the cost referred to in clause (a) shall be twenty per cent of such sum: Provided also that where the cost referred to in clause (b) is not ascertainable, such cost shall be 1.125% of free on board value of the goods: Provided also that where the free on board value of the goods is not ascertainable but the sum of free on board value of the goods and the cost referred to in clause (a) is ascertainable, the cost referred to in clause (b) shall be 1.125% of such sum: Provided also that in the case of goods imported by air, where the cost referred to in clause (a) is ascertainable such cost shall not exceed twenty percent on free of board value of the goods: Provided also that in the case of goods imported by sea or air and transshipped to another customs station in India, the cost of insurance, transport, loading, handling charges associates with such transshipment shall be excluded Explanation:- The cos ..... 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