2012 (8) TMI 251 - AT - Customs

Import of goods related person - goods imported by them were referred to special valuation cell for valuation of the goods Held that - Therefore the extra discount received by the appellant is not justifiable and the Commissioner (Appeals) has gone differently on other grounds and held that value has to be arrived as per Rule 7/8 of the Customs Valuation Rules 2007 which is not justified as it is neither the issue nor prayed before him. matter remanded back.

Summary

Issues: Valuation of imported goods, related party transaction, Customs Valuation Rules

In this judgment by the Appellate Tribunal CESTAT, Mumbai, the appellant appealed along with a stay application regarding the valuation of goods imported from a foreign supplier. The appellant and the foreign supplier were related parties, leading to the goods being referred to a special valuation cell for assessment. The adjudicating authority determined the transaction value as proper and assessed the goods. However, the department contended that the appellant received an unjustified extra discount from the foreign supplier, challenging the valuation. The Commissioner (Appeals) remanded the matter back to the adjudicating authority to determine the assessable value following Customs Valuation Rules. The appellant then appealed this decision.

Upon hearing both sides, the Tribunal waived the pre-deposit requirement and proceeded with the appeal. The Tribunal noted that the Commissioner (Appeals) had focused on the related party issue and the application of Customs Valuation Rules, which was not the main issue raised. Consequently, the Tribunal set aside the Commissioner's decision and directed a reconsideration of the revenue's concerns. The Tribunal emphasized that the matter must be resolved within 60 days from the order date, ensuring a fair hearing for the appellant. All issues were left open for further consideration. Ultimately, the Tribunal disposed of the stay application and the appeal accordingly.