TMI Blog2020 (5) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... 758, 53762, 53763 of 2018 - FINAL ORDER NO. 51677-51723/2019 - Dated:- 8-11-2019 - HON BLE MR. ANIL CHOUDHARY, MEMBER (JUDICIAL) AND HON BLE MR. C. L. MAHAR, MEMBER (TECHNICAL) Shri Parth, Advocate for the appellant. Shri Vivek Pandey, Authorised Representative for the respondent Customs Appeal Nos. 53743, 53744, 53746, 53748, 53750, 53751, 53754, 53755, 53757, 53758, 53762, 53763 of 2018, 53747, 53749, 53752, 53756, 53759, 53760, 53761, 53764, 53765, 53766, 53767 of 2018, 53745, 53753 of 2018, 50187 to 50194 of 2019, 50195 to 50208 of 2019 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1101146 1219564 118418 10.75% 5 4044383 02.11.2017 4605600 5447313 968949 1146033 177084 18.27% 6 4033728 02.11.2017 4824457 5706169 1014993 1200492 185499 9.11% 7 4562171 02.11.2017 5103827 5569270 1073769 1171691 97922 9.11% 8 4562170 02.11.2017 5151295 5621067 1083755 1182588 98833 10.16% 9 4032408 02.11.2017 4620118 5464484 972003 114945 177642 18.27% 5. Being aggrieved, the appellant filed appeals before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Customs Act, which provides that for the purpose of the Customs Tariff Act or any other law for the time being enforced, the value of imported goods and export goods shall be the transaction value of such goods, that is to say the price actually paid or payable for the goods, when sold for export to India for delivery at the time and place of importation, or, as the case may be, for export from India for delivery at the time and place of exportation, where the buyer and seller of the goods are not related and price is the sole consideration for the sale of subject goods or such other consideration, as may be specified in the Rules made in this behalf. 10. Further, sub section (2) of Section 14 provides that, notwithstanding anything contained in the provision of sub Section (1), if the Board is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, fix tariff values for any class of imported goods or export goods, having regard to the trend of value of such or like goods, and where any such tariff values are fixed, the duty shall be chargeable with reference to such tariff value. 11. Ld. Counsel states that similar issue of reje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablish that the price is not the sole consideration; and to give the reasons supported by material on the basis of which the Assessing Officer arrives at his own assessable value. 11. In South India Television (P) Ltd., the Court explained as to how the value is derived from the price and under what circumstances the deemed value mentioned in Section 14(1) can be departed with. Following discussion in the said judgment needs to be quoted hereunder : 10. We do not find any merit in this civil appeal for the following reasons. Value is derived from the price. Value is the function of the price. This is the conceptual meaning of value. Under Section 2(41), value is defined to mean value determined in accordance with Section 14(1) of the Act. Section 14 of the Customs Act, 1962 is the sole repository of law governing valuation of goods. The Customs Valuation Rules, 1988 have been framed only in respect of imported goods. There are no rules governing the valuation of export goods. That must be done based on Section 14 itself. In the present case, the Department has charged the respondent importer alleging misdeclaration regarding the price. There is no allegation of misdec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at higher price, the onus shifts to the importer to establish that the invoice relied on by him is valid. Therefore, the charge of underinvoicing has to be supported by evidence of prices of contemporaneous imports of like goods. 13. Section 14(1) speaks of deemed value . Therefore, invoice price can be disputed. However, it is for the Department to prove that the invoice price is incorrect. When there is no evidence of contemporaneous imports at a higher price, the invoice price is liable to be accepted. The value in the export declaration may be relied upon for ascertainment of the assessable value under the Customs Valuation Rules and not for determining the price at which goods are ordinarily sold at the time and place of importation. This is where the conceptual difference between value and price comes into discussion. 12. The observations of the Tribunal made in the impugned judgment are to be appreciated in the light of the principles of law specified in the aforesaid judgment, inasmuch as the Tribunal has categorically remarked that the normal rule is that assessable value has to be arrived at on the basis of the price which is actually paid, as provided b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
