2007 (6) TMI 368 - AT - Customs

Cloves - Exemption under SAPTA Notification No. 105/99-Cus. - Valuation - Contemporaneous imports

Summary

Issues:
1. Entitlement of the imported Cloves for concessional duty under Notification No. 105/99.
2. Rejection of declared value by the appellant and adoption of contemporaneous import price for assessment.

Analysis:

1. Entitlement for Concessional Duty:
The appeal was filed against an Order-in-Original regarding the import of Cloves from Pakistan under SAARC Preferential Trading Agreement. The Commissioner referred the matter to confirm Clove production in Pakistan, and the Indian High Commission found that Cloves are not grown in Pakistan. The appellants claimed entitlement under Notification No. 105/99 based on a Certificate of Origin from Pakistan. The Tribunal analyzed the validity of the Certificate, emphasizing that Certificates must align with facts. Referring to correspondence between ministries, it was revealed that Cloves sourced from Singapore and Indonesia are exported to Pakistan and Bangladesh. The Tribunal concluded that without evidence of Clove production in Pakistan, the concessional assessment under Notification No. 105/99 cannot be granted, upholding the impugned order.

2. Valuation and Assessment:
Regarding valuation, the Commissioner rejected the declared value for a consignment and adopted the value of Indonesian cloves for assessment based on NIDB data. The Tribunal noted that the appellants accepted the enhanced value for one consignment, leading to the adoption of the same value for the second consignment. It was held that since the appellants agreed to the value for one consignment, they cannot contest the value for the second consignment. Consequently, the Tribunal found no merit in the appeal, upholding the impugned order and dismissing the appeal.

In conclusion, the Tribunal ruled against the appellants, denying them the benefit of concessional duty under Notification No. 105/99 due to lack of evidence of Clove production in Pakistan and upheld the valuation based on the adopted value for a previous consignment.