2002 (2) TMI 1160 - AT - Customs

Valuation - Invoice value vis-a-vis transaction value -Enhancement of value of imported goods

Summary

Issues:
1. Allegation of enhancement of value of imported goods by the department.
2. Contention regarding the application of Rule 4 of the Valuation Rules.
3. Interpretation of transaction value versus invoice value.
4. Application of exceptions under the proviso to sub-rule (2) of Rule 4.

Analysis:

1. The appellant imported two consignments of gum Arabic and faced a notice proposing to enhance the value of one consignment. The basis for enhancement was imports by another party in Bombay. The appellant argued that their imports were from a Nigerian producer, while the comparison imports were from traders in Germany, thus not on the same commercial level.

2. The appellant contended that unless exceptions under the proviso to sub-rule (2) of Rule 4 apply, the declared value must be accepted. Citing the Eicher Tractor case, the appellant argued that without evidence of fraudulent or manipulated value, the assessed value should stand.

3. The departmental representative alleged misdeclaration of value, distinguishing between invoice value and transaction value. The Tribunal found the invoice value to represent the transaction value unless proven otherwise. The notice did not allege concealment or manipulation of the price declared in the invoice.

4. The Tribunal upheld the Supreme Court's stance that transaction value should be accepted unless exceptions under the proviso to Rule 4 apply. As the notice did not allege any such exceptions, the transaction value declared by the appellant was deemed acceptable.

In conclusion, the Tribunal allowed the appeal, setting aside the order to enhance the value of the imported goods. The judgment emphasized the importance of transaction value unless proven otherwise, as per the provisions of Rule 4 and relevant legal precedents.