TMI Blog2023 (3) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... earned 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 could have a significant bearing on the manner in which the residual method is used for conformity with the scheme of valuation espoused in rule 3 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. Matter remanded back to the adjudicating authority for fresh determination of all issues that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and that, in doing so, rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 had been invoked for alleged lack of consistency among the values ascertained by their surveyor and the value for the purposes of marine hull and machinery insurance policy of M/s Oriental Capital Assurance for resort to rule 9 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 by adoption of value of US$ 3,814,411 estimated by M/s Intertek Testing Services Pvt Ltd to which landed cost was added for assessment. The Director of the importing company, Mr Ashish Ingle, is also before us challenging the penalty imposed on him under section 112 of Customs Act, 1962. 2. The impugned work accommodation barge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011 by the Indian Register of Shipping (IRS) to replace the one issued by the Malaysian Registry on completion of construction at Singapore in 1980. Furthermore, it was ascertained that, between the offer for sale and actual transfer, the vessel had undergone dry docking for refitment and that, to comply with the undertaking given at the time of earlier import, the vessel was towed to international waters before being returned to anchorage for completion of import formalities. 4. The estimate of value in the certificate issued by M/s MR Shenvi Associates, commissioned by the appellant in accordance with circular no. 04/2008-Cus dated 21st February 2008 of Central Board of Excise Customs (CBEC) and attached to the bill of entry, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared value even though the very same requirements under section 14 of Customs Act, 1962 was to be adhered to. He drew attention to the proceedings before the adjudicating authority during which the glaring flaws in the estimate afforded by the surveyor appointed by the investigators had been brought out which, however, did not appear to impress itself on the adjudicating authority. He pointed out that, during the investigation itself, the Director-appellant had furnished valid explanation for the price at which they had managed to secure the impugned vessel. It was further contended that, in the circumstances in which the predetermined value was adopted for assessment, there was no scope for alleging any misdeclaration or suppression o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r import by the appellant, was already in their ownership and, thereby, the condition of at the time and place of importation would not be fulfilled. It was also contended that the same assertion was invoked to extend the period of limitation in section 28 of Customs Act, 1962. The insinuation of justification for enhancing the value further, on account of the class certification as well as the refurbishment of the vessel, was also undertaken without placing them on notice is also contended. 8. Reliance was placed by him on the decision of Hon ble Supreme Court in Commissioner of Central Excise v. Gas Authority of India Ltd [2008 (232) ELT 7 (SC)], in Commissioner of Customs, Mumbai v. Toyo Engineering India Ltd [2007 (201) ELT 513 (SC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manner in which the residual method is used for conformity with the scheme of valuation espoused in rule 3 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. 10. We would also like to point out that the determination of the value in the certification of the Chartered Engineer retained by the investigators would have to be elaborated upon by the adjudicating authority for it to have credibility acceptable to the appellate process. 11. In view of the above, it would be appropriate to set-aside the impugned order and remanded the matter back to the adjudicating authority for fresh determination of all issues that the appellants have raised the proceedings before us. The miscellaneous application is dispose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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