2008 (12) TMI 476 - AT - Customs

Summary

Issues:
- Rejection of declared value for import of cosmetics
- Application of Rule 8 of Customs Valuation Rules
- Acceptance of transaction value by Commissioner (Appeals)
- Contemporaneous imports at Chennai Customs House
- Contention regarding valuation as per Customs Valuation Rules 5 and 6

Analysis:
The judgment concerns three cases where the adjudicating authority had rejected the value declared by the respondents for the import of cosmetics, opting to enhance the value by applying Rule 8 of the Customs Valuation Rules. However, the Commissioner (Appeals) accepted the transaction value. The Commissioner based this decision on the production of Bills of Entry for identical/similar goods cleared at Chennai Customs House around the same time. The Commissioner also highlighted that the market enquiry lacked details and argued that valuation should align with Customs Valuation Rules 5 and 6, not Rule 8.

Upon hearing both sides, the Tribunal found no error in accepting the values of contemporaneous imports of similar/identical goods cleared at Chennai Customs House. The Tribunal dismissed the Revenue's argument that only contemporaneous imports at Tuticorin Port should be considered since the goods were imported in Tuticorin. The respondents pointed out that the lowest value of the goods, i.e., the contemporaneous imports at Chennai Customs House, should be accepted. Consequently, the Tribunal upheld the impugned orders, accepted the transaction value declared by the respondents, and rejected the appeals.

In conclusion, the Tribunal's decision centered on the acceptance of transaction values based on contemporaneous imports at Chennai Customs House, emphasizing the lack of error in this approach. The judgment clarified the correct application of Customs Valuation Rules and rejected the Revenue's contentions, ultimately affirming the Commissioner (Appeals)'s decision in favor of the respondents.