TMI Blog2009 (2) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... business of importing various goods like plastic materials. They imported a consignment of 18.45 metres of LDPE/HDPE mix granules/powder (floor sweeping) from USA in the month of July, 2000. These goods are claimed to have been purchased from M/s Pexim International of USA under Invoice No. 2827 at the total price of US $ 4151.25. The importer declared these goods as freely importable item under para 5.1. of the EXIM Policy 1997-2000. The goods were subjected to examination. Some of these goods were found to be mis-declared goods in terms of value and some were found mis-declared in terms of description, value and quality. In view of mis-declaration of goods in terms of description and value, the Customs Authority was of the view that these were liable to be confiscated and importer was liable for penal action. A show cause notice was sought to be given but the importer waived issuance of show cause notice and personal hearing. The Additional Commissioner of Customs, Kandla vide order in original dated 29.11.2000 rejected the invoice price as was found to be very low as compared to prevalent international market price and in view of misdeclaration of goods in terms of value and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Meenakshi Arora, learned counsel, appearing for the appellants, relying upon a decision of this Court in the case of Eicher Tractors Ltd., Haryana v. Commissioner of Customs, Mumbai (2001) 1 SCC 315, strenuously urged that the transaction value i.e., price actually paid for imported materials alone can be considered to be the assessable value and, therefore, the impugned Standing Order which directed the assessing authorities to discard such transaction value and take the price published in magazine like PLATT's Weekly Report, as the assessable value was unsustainable in law. The learned counsel referred to two more decisions of this Court viz., (1) Rabindra Chandra Paul v. Commissioner of Customs (Preventive) Shillong (2007) 3 SCC 93; (2) Commissioner of Customs, Calcutta v. South India Television (P) Ltd. (2007) 6 SCC 373 wherein Eicher Tractors has been followed. In challenging the Standing Order as invalid and ultra vires, the learned counsel submitted that no instructions could be issued as to how assessable value of imported goods should be determined and as to how a consignment of waste like floor sweepings should be classified. She placed reliance on Orient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (46 of 1973) 10. Section 151A empowers the Board to issue orders, instructions and directions to officers of Customs for the purpose of uniformity in the classification of goods or with respect to levy of duty thereon. The said provision is as follows:- [ 151A. Instructions to officers of customs - The Board may, if it considers it necessary or expedient so to do for the purpose of uniformity in the classification of goods or with respect to the levy of duty thereon, issue such orders, instructions and directions to officers of customs as it may deem fit and such officers of customs and all the other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board : Provided that no such orders, instructions or directions shall be issued - (a) so as to require any such officer of customs to make a particular assessment or to dispose of a particular case in a particular manner; or (b) so as to interfere with the discretion of the Commissioner of Customs (Appeals) in the exercise of his appellate functions.] 11. Section 156 of the Act empowers the Central Government to make rules consistent with the Act for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r demonstrates that the declared value of the goods being valued, closely approximates to one of the following values ascertained at or about the same time - (i) the transaction value of identical goods, or of similar goods, in sales to unrelated buyers in India; (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 difference in commercial levels, quantity levels, adjustments in accordance with the provisions of Rule 9 of these rules 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. 12. Section 14(1) of the Act prescribes a method for determination of the value of the goods. It is a deeming provision. By legal fiction incorporated in this Section, the value of the imported goods is the deemed price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation in the course of international trade. The word 'or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have been laid down that even in a case of invoice manipulation or under-invoicing or ridiculously low price or misdeclaration in respect of valuation of goods or description or non-commercial considerations or in such like circumstances, the transaction value cannot be rejected by the assessing authority. The observations in Eicher Tractors, "…In the case before us it is not alleged that the appellant has mis-declared the price actually paid. Nor was there a mis-description of goods imported as was the case in Padia Sales Corporation", leave no manner of doubt in what we have noticed above. As a matter of fact in Eicher Tractors, Padia Sales Corporation v. Collector of Customs (1993) Supp. 4 SCC 57, Basant Industries Nunhai, Agra v. Additional Collector of Customs, Bombay (1995) Supp 3 SCC 320 and Sharp Business Machines v. Collector of Customs (1991) 1 SCC 154; were found distinguishable as in these cases the rejection of transaction value was found justified being covered by special circumstances and/or mis-description of the imported goods to defraud revenue. 15. Rabindra Chandra Paul (supra) and South India Television (P) Ltd.,(supra) also recognize the lega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is explained as rates and prices maintained in the internationally reputed finance journal PLATT's WEEKLY REPORT. It has also given direction as to how classification of mixed material like floor sweeping should be made. 20. The question now is whether the impugned Standing Order in any manner interferes with the independent quasi-judicial function to be discharged in the assessment of duty by the Assessing Officer. Whatever be the language employed in the Standing Order which may suggest that the said instructions are in the nature of a mandate or command, High Court has read down the impugned Standing Order purely as instructions or guidelines and not mandate or command for being obeyed in each individual case of assessment before them. The High Court further held that Standing Order is to be taken only as an assistance in exercise of the quasi-judicial power of determining value for the purpose of levying of customs duty. We agree with the view of the High Court. As a matter of fact, it is the case of the Department as well that the impugned Standing Order is not binding; it is just in the nature of guidelines to streamline the functioning of Customs Officers at various fie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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