TaxTMI 
TaxTMI 
2021 (3) TMI 1068
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...., and for a direction to the second respondent to rehear the petitioner within a reasonable time limit and issue a fresh investigation report. 2.The second respondent has furnished the Impugned Investigation Report concluding that the petitioner's relationship with its group companies has influenced the declared prices warranting intervention and opining that the declared prices are to be rejected under Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 (for short, the CV Rules, 2007). The questions that arise for consideration in this writ petition are: whether the impugned Investigation Report is issued in violation of the principles of natural justice, and if it is issued in violation of the principles of natural justice, what would be the appropriate order. These questions arise for consideration in the circumstances stated hereafter. 3.The petitioner, because it is importing perfumery and flavouring compounds from its group companies, registered itself with the Special Value Branch (SVB) and is allotted a unique file number in S50/45/2003-SVB. The petitioner, upon its registration as aforesaid, has submitted its reply to the questionnaires as required, ....
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....SVB), Bengaluru - the second respondent, has submitted representations for renewal of the SVB order dated 05.10.2004. The petitioner's request for renewal of the said SVB order is kept in abeyance awaiting the CESTAT's order in the appeal filed by the petitioner. The CESTAT by its order dated 20.01.2016 in No.20067-20068/2016 has set aside the order-in-original and remanded the matter for re-adjudication. 7.Meanwhile, the Union of India has issued the Circular dated 09.02.2016 in No.5/2016 detailing the procedure to be followed for renewal of SVB orders. In terms thereof, the petitioner is called upon to file declarations, and the petitioner has submitted declaration as per Annexure-1 appended to the Circular dated 09.02.2016 in No. 5/2016. The Petitioner has filed a Writ Petition in W.P No.41837/2016 because there was no decision after the Assistant Commissioner of Custom (SVB), Bengaluru - the second respondent - refused to accept the declaration filed by the petitioner in Annexure-1 and the petitioner filed further information to justify filing declaration in Annexure - 1. 8.This Court in W.P No.41837/2016 by its interim order dated 27.10.2016, while directing that no EDD shal....
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....nt Commissioner of Customs (SVB) in assessing whether relationship has influenced the pricing pattern of the imported Goods. It also prescribes the procedure for inquiry/investigation into related party transactions. The Circular dated 09.02.2016 in No. 5/2016 prescribes that upon receipt of information filed by an importer in the prescribed forms, a Deputy Commissioner/Assistant Commissioner (SBV) shall commence inquiry. During the course of such inquiry, the importer may be called to furnish further documents or information as required and the importer be given suitable opportunity to submit evidence in support of the declared value. After completion of enquiry/investigation, the Deputy Commissioner/Assistant Commissioner of Customs (SUB) furnishes an Investigation Report incorporating all the relevant facts, submissions made by the importer, investigative findings, grounds for acceptance or rejection of the transaction value and the extent of influence on declared transaction value, if any. This Investigation Report, which forms the basis for further decision by the adjudicating authority, is to be preceded by an inquiry which has all the strappings of a personal hearing. Theref....
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....ting Report would be untenable and cannot be accepted. 15.Sri Jeevan J Neeralgi, learned Counsel also submits that though violation of the principles of natural justice is alleged, the petitioner has not pointed out any prejudice occasioned to the petitioner. And, because prejudice as a consequence of such alleged violation of the principles of natural justice is not brought out, the contention that the impugned Investigating Report is rendered in violation of principles of natural justice, cannot be sustained. Sri Jeevan J Neeralgi, learned Counsel relies upon the decision of the Hon'ble Supreme Court in Dharampal Styapal Ltd. v. Deputy Commissioner of Central Excise [2015] 58 Taxmann.com 90 (SC) in support of this decision. 16.In rejoinder, Sri S S Naganand, learned Senior Counsel relying upon the decision of the Hon'ble Supreme Court in Automotive Tyre Manufacturers Association v. Designated Authority and others (2011) to Supreme Court cases 258 submits that it is settled that unless statutory provisions specifically or by necessary implication exclude the application of the requirement of a reasonable opportunity, such requirement is read into the provisions of such Statute/R....
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.... finding on the extent of influence on declared transaction value, if any, Paragraph 8 of the Circular dated 09.02.2016. It is after the receipt of this Investigation Report that the adjudicating authority passes an order quantifying, the extent of influence, if any, in the declared transactional value. As stated in the Circular dated 09.02.2016 this mechanism is evolved to obviate multiple streams of appeals for the trade with an opportunity to the importer to submit evidence before the concerned Assistant Commissioner (SVB). 19.The Hon'ble Supreme Court In Jaswant Sugar Mills Ltd., Meerut Vs. Lakshmi Chand & Ors., AIR 1963 SC 677, which is referred to in Automotive Tyre Manufacturers Association v. Designated Authority and Others Supra has observed that: "Often the line of distinction between decisions judicial and administrative is thin: but the principles for ascertaining the true character of the decisions are well-settled. A judicial decisionis not always the act of a judge or a tribunal invested with power to determine questions of law or fact: it must however be the act of a body or authority invested by law with authority to determine questions or disputes affecting t....
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....rwise, the Hon'ble Supreme Court in Automotive Tyre Manufacturers Association v. Designated Authority and Others supra after an overview of the decisions on compliance with the principles of natural justice has held as follows: "It is thus, well settled that unless a statutory provision, either specifically or by necessary implication excludes the application of principles of natural justice, because in that event the Court would not ignore the legislative mandate, the requirement of giving reasonable opportunity of being heard before an order is made, is generally read into the provisions of a statute, particularly when the order has adverse civil consequences which obviously cover infraction of property, personal rights and material deprivations for the party affected. The principle holds good irrespective of whether the power conferred on a statutory body or Tribunal is administrative or quasi-judicial. 22.It is further declared in this decision that it is trite that the concept of natural justice can neither be put in a strait-jacket nor is it a general rule of universal application. There can be exceptions to the said doctrine, but the question whether the principle has to....