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TMI Blog2023 (3) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... ted against bill of entry no. 3864583/22.06.2011 under section 28 of Customs Act, 1962, along with interest thereon under section 28AB of Customs Act, 1960, confiscation of 'work accommodation barge Sarku Utama' under section 111(m) of Customs Act, 1962 with option to redeem on payment of fine of Rs. 1,75,00,000, and imposition of penalty of like amount under section 114A of Customs Act, 1962, is in appeal challenging order [order-in-original no. 47/2013/CAC/CC(I)/AB/Gr.VB dated 28th March 2013] of Commissioner of Customs (Import), New Customs House, Mumbai. The cavil of the appellant is that the transaction value of US $ 25,000,000 (approximately Rs. 11,75,78,982) in the memorandum of agreement (MoA), as well as bill of sale, with the sell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bill of entry thereupon declaring the bid price, supported by 'bill of sale' dated 7th June 2011, to be the FOB value and, with addition of freight of Rs. 10,00,000 and insurance of Rs. 12,89,833.73, taking Rs. 11,75,78,982.07 as 'transaction value' for assessment on which duty liability of Rs. 1,78,11,468.60 was duly discharged. 3. Upon the transaction being taken up for investigation, it transpired that appellant had commenced the process of transferring the registry of the vessel to bring it under the Indian flag for which no. M-7739 was assigned and certificate of class dated 18th January 2010 issued by the Mercantile Marine Department (MMD) of Director General of Shipping to 'Offshore Rani', as she was now named, besides being issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 411 was considered to be the most reliable and, more particularly so, in the light of statement given by the appellant-Director during the course of investigations. Hence show cause notice was issued on 8 th February 2012 which culminated in the order leading to these appeals. 5. Learned Counsel for the appellants submits that the entire process of re-assessment is not in consonance with the valuation provisions in Customs Act, 1962 as, according to him, there is no allegation that the price declared, and corresponding to the sale value in the agreement as well as bill of sale, was not the 'transaction value' and, hence, not liable to be rejected at all. It was also contended that the earlier import of the impugned vessel, albeit for tempo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the banker and the value at which policy for 'hull and marine insurance' had been taken by the previous owner, was supported by Learned Authorized Representative for its unassailable logic. According to him, the price declared in the bill of entry as 'transaction value' was liable to be rejected for want of conformity with the several elements of section 14 of Customs Act, 1962 necessary for acceptance without question. 7. At this stage, it would be appropriate to take note of miscellaneous application filed by the appellant for inclusion of additional grounds in the challenge to the impugned order. It is contended by Learned Counsel that the adjudicating authority had, without placing notice of intent to do so, adduced the proposition tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts, not suitably tested by offering opportunity to challenge, which is anathema to just and fair adjudication. The deficiency in not placing the appellants on notice of these allegations would need to be remedied and it is only by a fresh adjudicating process that the factual position may be established. As pointed out by Learned Council, the restricted framework of section 28 and section 114A of Customs Act, 1962 would have to be adhered to in in the fresh proceedings. The adjudicating authority is also obliged to explain the different positions adopted for valuation of the same vessel which, but for a brief while, was within Indian territorial waters and, yet, was found to be valued with substantial difference on the two occasions; this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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