2013 (5) TMI 549 - AT - Customs

Enhancing the transaction value - department has rejected the transaction value on the ground that it is not the true commercial value of the goods - Held that - Rejection of transaction value and enhancement of assessable value has to be on the basis of some evidences on record. Contemporaneous imports have to be considered with reference to quality, quantity and country of origin with the imports under consideration. It has been held in a number of decisions that NIDB data cannot be made the basis for enhancement of value. Commissioner (Appeals) has relied Eicher Tractors Ltd. v. CC (2000 (11) TMI 139 - SUPREME COURT OF INDIA) in support of his finding that transaction value cannot be rejected without clear and cogent evidence produced by the department with regard to quality, import of origin and place and time of import. As revenue has not advanced any such evidences to support their case no reason to interfere with the impugned order of Commissioner (Appeals). Revenue s appeal is accordingly rejected.

Summary

Issues:
Assessable value of imported fabric, rejection of transaction value, enhancement of assessable value based on evidence, reliance on NIDB data, legal grounds for rejecting transaction value.

Analysis:
The dispute in this case revolves around the assessable value of different types of imported fabric. The Commissioner (Appeals) ruled in favor of the respondents, highlighting that the department had not provided any valid reasons for loading the value, lacked expert opinion or evidence from other importers, and failed to present any evidence to dispute the true commercial value of the goods. The Revenue contended that under Section 14 of the Customs Act, the transaction value should be considered as the value of the imported goods. They referred to a case from the Hon'ble High Court of Calcutta to support their argument. The Customs authority doubted the correctness of the prices paid by the importer and re-determined the price based on the Customs Valuation Rules. The Revenue aimed to enhance the value based on a detailed study conducted at Bombay Customs, which led to the ascertainment of the value of various types of fabric. However, the Tribunal emphasized that any rejection of transaction value and enhancement of assessable value must be supported by evidence on record, including consideration of contemporaneous imports in terms of quality, quantity, and country of origin. The Tribunal also noted that NIDB data alone cannot be the basis for enhancing value.

The Tribunal found that the Revenue failed to provide any evidence to support their case for rejecting the transaction value. As a result, since no valid grounds were presented for the rejection, the Tribunal upheld the order of the Commissioner (Appeals) and rejected the Revenue's appeal. The Tribunal emphasized the importance of clear and cogent evidence to reject transaction value, as established in previous legal decisions. In this case, the lack of evidence from the Revenue led to the dismissal of their appeal.