9911796707
TMI Blog2024 (7) TMI 1624X X X X Extracts X X X X X X X X Extracts X X X X ..... 16.02.2021, for export of "Cut & Polished Diamonds, 1994.92 Carats", with declared FOB value of Rs.2,92,68,527/-. During examination of the said export consignment, the goods were referred to the Expert Panel Member for valuation purpose, who opined that the value stated were 40 to 45% less than the actual market rates. The appellant vide letter dated 18.02.2021 stated that the value of the goods was fair and they had no reason to sell the goods below the market value. They requested for reassessment for a fair evaluation. Thus, the goods were referred to the Three Expert Panel Members, who after examination of the subject goods, gave an opinion that the declared values were 20% less than the market value. Accordingly, the value of the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23-24 dated 23.08.2023 (for short, referred to as 'the impugned order'), has upheld confirmation of the adjudged demands on both the appellants and rejected the appeal filed by them. Feeling aggrieved with the impugned order, the appellants have preferred these appeals before the Tribunal. 2. Learned Advocate appearing for the appellants submitted that the Expert Panel Opinion is without any legal basis inasmuch as it does not reveal the source for the market value. He further submitted that no investigation was conducted by the department to ascertain as to the exact amount paid by the overseas buyer to the appellant for export of the impugned goods. Thus, he submitted that the charges leveled for undervaluation cannot be sustained. Learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 975, then the question of determination of value of goods arises and for such purpose, Section 14 ibid read with the Rules, 2007 shall be applicable for determination of the value for the purpose of levy of customs duty. The goods exported outside the country are leviable to customs duty, if provided in the Second Schedule to the Act of 1975. The product 'Rough diamond' falling under Chapter heading 7102 is not finding place in the said Schedule. Since, the product in question has not been specifically itemized in the said schedule and no rate of duty has been prescribed for the same determination of value as provided in Section 14 ibid read with the Rules, 2007 shall not be applicable inasmuch as the value is required to be determined only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inasmuch as the Single Expert Member had confirmed that the value stated by the appellant is approximately 40 to 45% less than the market rates; whereas, the Three Expert Panel Members had confirmed that the declared value on the average are 20% less than the market value as on 17.02.2021. Further, on reading of the extracted portion of the reports as mentioned in the original order, we find that no specific averments were made by those Expert Panel Members as to how they arrived at the figure that the declared value is 20% - 40 to 45%. We also find that both the said reports are not authoritatively concluded that the declared value in respect of the export goods is less than the actual value prevailing in the market. The said fact is evide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (supra). The relevant paragraphs in the said order are extracted herein below: "3. ... This Tribunal in dealing with this dispute on the former occasion had specified the manner in which the valuation of the goods was to be arrived at. The contention of the appellant that the so-called 'trade panel' is no expert body would appear to be borne out by the lack any description of their qualifications in the impugned order and by the differing values that appear at different points in time in relation to the dispute. There is also no indication that the report of the 'trade panel' had been made available to the appellant. The adoption of the value recommended by the 'trade panel' would, therefore, not be in consonance with the directions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no ban on export of diamonds and no authority is vested in the Commissioner of Customs to disallow an export in the absence of a ban. The impugned order is vitiated by arbitrary and unauthorised exercise of power. 6. We do not find any justifiable reason for the adjudicating authority to accept the value recommended by 'trade panel' and there is also no finding to sustain the invoking of Section 113(i) of Customs Act, 1962 viz. 'SECTION 113. Confiscation of goods attempted to be improperly exported, etc. - The following export goods shall be liable to confiscation :- xxxxx (i) any goods entered for exportation which do not correspond in respect of value or in any material particular with the entry made under this Act or in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
