2007 (2) TMI 425 - AT - Customs

Summary

Issues:
1. Appeal against Order-in-Appeal allowing appeal against Anti Dumping Duty (ADD) demand.
2. Enhancement of assessable value to avoid ADD liability.
3. Validity of impugned order passed without evidence.

Analysis:

1. The appeal was filed by the revenue against the Order-in-Appeal allowing the appeal against a demand of Anti Dumping Duty (ADD) imposed on Mulberry Raw Silk imported from China. The importer had cleared the goods by prevailing upon the assessing officers to enhance the assessable value to avoid delays in clearance. The lower appellate authority set aside the original order demanding ADD without proper verification of the goods' grade. The Commissioner observed that the original order lacked evidence and set it aside. The revenue contended that the enhancement of the assessable value was a tactic to escape ADD liability and penal action. After considering the submissions, the Tribunal upheld the lower appellate authority's findings, dismissing the appeal and affirming the impugned order.

2. The case involved the importer opting for a minimum enhancement of the assessable value to avoid liability for Anti Dumping Duty (ADD) on the imported Mulberry Raw Silk. The revenue argued that this enhancement indicated the goods were of a lower grade, justifying the ADD imposition. However, the Tribunal found no merit in the appeal, stating it was based on presumption without substantial grounds. The Tribunal upheld the lower appellate authority's decision, emphasizing the lack of evidence to support the revenue's claims. Consequently, the appeal was dismissed, and the impugned order was upheld.

3. The main issue revolved around the validity of the impugned order passed without substantial evidence. The original authority had demanded ADD without verifying if the imported Mulberry Raw Silk was of the grade subject to ADD. The Commissioner set aside the order, citing lack of evidence and improper procedure. The Tribunal concurred with this assessment, finding the appeal lacking merit and based on unfounded presumptions. By dismissing the appeal and upholding the impugned order, the Tribunal emphasized the importance of evidence and proper verification in imposing ADD, highlighting the necessity for due process in customs matters.