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Issues:
1. Arbitrary enhancement of value by Customs authorities 2. Legality of appellant's challenge against the order of enhancement 3. Lack of reasons for rejection of assessable value 4. Commissioner's finding of acceptance of loaded value by appellant Analysis: 1. The appellant imported Porcelain Ware from China and filed a Bill of Entry for clearance. Customs authorities doubled the value of the consignment without providing any reason, leading to an enhanced duty assessment. The appellant, without agreeing to the enhanced value, cleared the goods to avoid demurrage and losses. The Commissioner (Appeals) upheld the enhancement order, citing estoppel due to the appellant's payment without protest. The Tribunal found the enhancement arbitrary and unsustainable, as no basis or reason for the increase was provided. 2. The appellant contended that they were not informed about the rejection of the purchase price or the impending value enhancement. The appellant's counsel argued that clearing the goods and paying duty did not amount to acceptance of the enhanced value. It was emphasized that the right to challenge assessment orders in appeal remains intact, even if the goods are cleared post-payment. The Tribunal agreed, highlighting that the appeal's maintainability is not affected by the clearance of goods. 3. The Tribunal noted that the record lacked any justification for rejecting the assessable value or determining the quantum of enhancement. The arbitrary nature of the enhancement was evident, as acknowledged even by the Departmental Representative. Without a valid basis for the increase, the Tribunal deemed the order unsustainable and set it aside. 4. The Commissioner's finding that the appellant accepted the loaded value was disputed by the Tribunal. No evidence existed to prove the appellant's knowledge or acceptance of the proposed value enhancement. The Tribunal emphasized the appellant's right to challenge assessment orders through appeal, which necessitates a reasoned order from the authority. Since no reasons were provided in the record, the Tribunal concluded that the order of enhancement lacked a legal or factual basis and, therefore, could not be upheld. In conclusion, the Tribunal set aside the impugned order, allowing the appeal in favor of the appellant and granting any consequential relief due to them.
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