TMI Blog2023 (10) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... rter of Corelle brand items to disclose the import price of the said goods, when imported by them and they have furnished the same. However, without considering this value, respondent took assistance from Chartered Engineer. Regarding the report submitted by the Chartered Engineer, the Chartered Engineer relied on the market value of similar indigenous items in India to ascertain the assessable value. In view of above facts, the method adopted by respondent to reject the transaction value based on such report of Chartered Engineer seems to be without any legal basis. As per the law laid down by the Apex Court in the matter of EICHER TRACTORS LTD. VERSUS COMMISSIONER OF CUSTOMS, MUMBAI [ 2000 (11) TMI 139 - SUPREME COURT ] and also in the case of COMMISSIONER OF CUSTOMS, CALCUTTA VERSUS SOUTH INDIA TELEVISION (P) LTD. [ 2007 (7) TMI 9 - SUPREME COURT] what should be accepted as transaction value for the purpose of assessment under Customs act is the price actually paid by the importer for the particular transaction unless it is unacceptable for the reasons set out in Rule 4, thus the Hon ble Supreme Court directs the customs authority to decide the validity of the particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was issued on 13.01.2009. 3. Heard both sides and perused the records. 4. The learned Counsel submitted that without considering the submissions made by the appellant, the impugned order is issued. The learned counsel for the appellant further submitted that there is no reason or justification to allege undervaluation. The goods imported by the appellant are of assorted size and as per the communication received by the Department during investigation, import value of even the branded goods imported by official dealer of the manufactures are available. However Adjudication Authority relied on the valuation report submitted by the chartered engineer, where the chartered engineer stated that he had adopted the value by visiting the local markets and collected data from the Malls and such method of valuation is unsustainable. Learned counsel further submitted that the Customs Authority failed to discharge the burden of proof with cogent evidence and rejection of transaction value is illegal and unsustainable. The report of chartered engineer is warranted only on those cases, where machineries are imported and not while assessing value of cutlery and home appliances. The appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to any goods to mean the value determined in accordance with the provisions of Section 14(1). The value to be declared in the Bill of Entry is the value referred to above and not merely the invoice price. On a plain reading of Section 14(1) and Section 14(1A), it envisages that the value of any goods chargeable to ad valorem duty has to be deemed price as referred to in Section 14(1). Therefore, determination of such price has to be in accordance with the relevant rules and subject to the provisions of Section 14(1). It is made clear that Section 14(1) and Section 14(1A) are not mutually exclusive. Therefore, the transaction value under Rule 4 must be the price paid or payable on such goods at the time and place of importation in the course of international trade. Section 14 is the deeming provision. It talks of deemed value. The value is deemed to be the price at which such goods are ordinarily sold or offered for sale, for delivery at the time and place of importation in the course of international trade where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or for offer for sale. Therefore, what has to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 7. ----------------------------------- 8. Before concluding, we may point out that in the present case at the stage of showcause notice, the Department invoked Rule 8 on the ground that the invoice submitted by the importer was incorrect. In Eicher Tractors (supra) this Court observed that Rule 4(1) of the Customs Valuation Rules refers to the transaction value. Utilization of the word the as definite article indicated that what should be accepted as the transaction value for the purpose of assessment under the Customs Act is the price actually paid by the importer for the particular transaction, unless it is unacceptable for the reasons set out in Rule 4(2). In the said judgment, it has been further held that, the word payable in Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undervaluation. During investigation matter was taken up with the Authorized importer of Corelle brand items. The scrutiny of the prices confirmed that the goods were grossly undervalued. The Learned AR for the Revenue, further submitted that only on reasonable belief that the goods are undervalued, the investigation commenced and the method of valuation adopted by the adjudication authority is proper. 8. We have considered the contentions made by both the parties. On perusal of the impugned order, as submitted by Learned AR, the goods were detained on reasonable believe that they are illegally imported by mis-declaring the value and description of the goods. Preliminarily, when details were sought, manufacturer of the goods informed that the value of the imported goods are lower than the market value of the goods. Based on the above email and data from Internet, further investigation was carried out. However, on inspection of the goods by Advocate Commissioner appointed by the Hon ble High Court of Kerala, it was found that there is no such mis-declaration regarding quantity as alleged. There is no such finding in impugned order as well. 9. Regarding the valuation, as per P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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