2008 (2) TMI 797 - AT - Customs

Summary

Issues: Valuation of imported Polypropylene granules from Singapore, enhancement of value based on international journal and contemporaneous import data.

The dispute in the present appeal of the Revenue pertains to the valuation of Polypropylene granules of Malasian origin imported by the respondent from Singapore. The declared value of USD 815 PMT was raised to USD 1150 PMT by the original adjudicating authority based on prices from the international journal DEWWITT Petrochemical Alert and contemporaneous data of import at Mumbai Customs House. The Commissioner (Appeals) found the reasons for enhancing the value insufficient and ruled in favor of the respondent, leading to the Revenue's appeal.

Upon hearing both sides, it was noted that previous Tribunal decisions, such as in the cases of M/s. Gujarat State Export Corpn. Ltd. and M/s. Adani Exports Ltd., established that enhancing prices based on international journal reports like PLATT's price report was not legally sound. The Tribunal concurred with the appellate authority that price enhancement solely relying on the journal was not in accordance with the law.

Regarding the contemporaneous import data, the appellate authority highlighted that the adjudicating authority failed to provide details of the country of origin, quantities imported, and specific grades of Polypropylene granules for comparison. The lack of specific data rendered the comparison with identical goods legally unsustainable. The Revenue did not present evidence to demonstrate that the goods under consideration were contemporaneous with those used for comparison, as required by law. Without sufficient evidence of identical origin, quality, and quantity, the transaction value could not be rejected solely based on being perceived as low or unrealistic. The absence of evidence of any clandestine remittance further supported the decision.

In light of the above analysis, no infirmity was found in the views adopted by the Commissioner (Appeals), leading to the rejection of the Revenue's appeal.

The appeal filed by the Revenue was consequently rejected, and the judgment was pronounced in court.