9911796707
TMI Blog2025 (3) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals), Bangalore. 2. Briefly the facts are the appellant had imported 'Oath Token' by declaring the unit price as USD 6.5 and cleared under RMS facility. Later on, investigations revealed that there was undervaluation in as much as identical goods from the same supplier were assessed at unit price of USD 50 each which was accepted by the appellant and cleared on payment of appropriate duty, hence the Commissioner in the impugned order redetermined the value under Rule 4 of the Customs Valuation Rules, thus confirming the demand of Rs. 39,12,062/- and appropriation of Rs.40,81,732/- inclusive of interest. Also upheld imposition equivalent penalty by the original authority. 3. The Learned Counsel submits that the imported goods 'Oath Toke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be sustained as there is no wilful suppression. It is also stated that the notice is premature since the assessments are yet to be finalized placing reliance on ITC Ltd. Vs. CCE: 2004 (170) ELT 33 (LB) affirmed by the Supreme Court 2006 (203) ELT 532. 4. The Authorized Representative on behalf of the revenue reiterating the findings of the Commissioner contends that the enhancement is based on the value accepted by the appellant for their previous inputs, hence cannot be ignored. Relied upon the decision in the case of Bharathi Ltd. Vs. The Principal Commissioner of Customs, Bangalore Final Order No. 20667/2024 dated 20.08.2024, Cimmco Ltd. Vs. Commissioner of Central Excise, Indore 2011 (263) ELT 101 (Tri.-Del.). 5. Heard both sides. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red, it is deemed that the transactional value of such imported goods cannot be determined under the provision of sub-rule (1) of Rule 3 of the 2007 Rules. Clause (iii) of Explanation to Rule 12 states that the proper officer can on 'certain reasons' raise doubts about the truth or accuracy of declared value. 'Certain reasons' would include conditions specified in clauses (a) to (f) i.e. higher value of identical similar goods of comparable quantities in a comparable transaction, abnormal discount or abnormal deduction from ordinary competitive prices, sales involving the special prices, misdeclaration on parameters such as description, quality, quantity, country of origin, year of manufacture or production, non-declaration of parameters su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to the imported goods. (b) Proper officer must ask the importer of such goods further information which may include documents or evidence; (c) On receiving such information or in the absence of response from the importer, the proper officer has to apply his mind and decide whether or not reasonable doubt as to the truth or accuracy of the value so declared persists. (d) When the proper officer does not have reasonable doubt, the goods are cleared on the declared value. (e) When the doubt persists, sub-rule (1) to Rule 3 is not applicable and transaction value is determined in terms of Rules 4 to 9 of the 2007 Rules. (f) The proper officer can raise doubts as to the truth or accuracy of the declared value on 'certain reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lieve" or "satisfaction" or such other positive terms as a pre-condition on the part of the proper officer. The expression "reason to believe" which would have required the proper officer to refer to facts and figures to show existence of positive belief on the undervaluation or lower declaration of the transaction value. The expression "reason to doubt" as a sequitur would require a different threshold and examination. It cannot be equated with the requirements of positive reasons to believe, for the word 'doubt' refers to un-certainty and irresolution reflecting suspicion and apprehension. However, this doubt must be reasonable i.e. have a degree of objectivity and basis/foundation for the suspicion must be based on 'certain reasons'. . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be recorded and if requested disclosed/communicated to the importer. Valuation alerts could be relied upon for default valuation computation under the Rules. [See Varsha Plastic Pvt. Ltd. v. Union of India, (2009) 3 SCC 365 = 2009 (235) E.L.T. 193 (S.C.)]". 7. In view of the above, since the appellant had cleared identical products earlier on payment of USD 50, the Commissioner's order to redetermine the value based on the earlier acceptance of the value at USD 50 cannot be found fault with. In fact, the appellant in the present 5 Bills of Entry vide his letter dated 29.09.2011 has clearly admitted that the differential duty and interest has been voluntarily paid and had requested to drop all proceedings. It is also a fact that the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
