2013 (8) TMI 275 - HC - Customs

Relief beyond the term enhanced value - Whether the Tribunal was correct in law in granting the relief beyond the terms of the prayer of the assesse in as much as the importer had agreed enhancement to 50% and 25% of the value for calculators with cartons and without cartons respectively and by setting aside the order allowing the appeal and directing the proper officer of the revenue to complete assessment of the goods on the basis of the declared value Held that - The order of the CESTAT was confirmed and the Officer concerned was directed to complete the assessment - in the absence of any material evidence the statement made by the assessee for valuation in respect of calculators with cartons and without cartons and the enhancement of the value would be of the order of 50% and 25% respectively assumes significance while arriving at the value for the purpose of adjudication. Statement u/s 108 - Whether the Tribunal was correct in holding that the voluntary statement deposed u/s 108 with respect to acceptance of values, cannot be the basis for enhancing the values in the light of the settled law in the case of Surjeet Singh Chhabra Vs. Union of India 1996 (10) TMI 106 - SUPREME COURT OF INDIA - Whether the CESTAT was justified in directing the Adjudicating Authority to complete the assessment based on the value declared based on the quotation received - The contention of the assesse that the penal action would be harsh and the statement under Section 108 was not of a binding character and that there were no materials to hold that the concession agreed to was only to enable an early clearance cannot be accepted. The assessee accepted the enhancement of the value - the assessee himself gave an undertaking that he would produce the manufacturer s invoice - before the Adjudicating Authority, no corroborative material or evidence was placed to substantiate the stand that the value given was based on the documents filed before the Officer - Adjudicating Authority was directed to complete the assessment taking note of the value agreed for enhancement in respect of calculators with cartons by 50% and the calculators without cartons by 25%, but without penal action Decided against assesse.

Summary

Issues:
1. Correctness of enhancing values based on voluntary statement under Section 108 of the Customs Act, 1962.
2. Granting relief beyond the terms of prayer in appeal and directing assessment based on declared value.

Issue 1: Correctness of enhancing values based on voluntary statement under Section 108 of the Customs Act, 1962:
The case involved discrepancies in quantity, description, and valuation of imported printer calculators. The Adjudicating Authority rejected the declared value and determined a revised value based on the importer's voluntary submission for enhancement under Section 108. The First Appellate Authority upheld this decision. However, the Customs, Excise and Service Tax Appellate Tribunal found that the quotation price from a particular company could not be the basis for enhancing the value. The Tribunal set aside the previous orders and directed the assessment to be completed based on the declared value, rejecting the Revenue's argument that the quotation was a proper base for assessment. The Tribunal emphasized that the importer's voluntary statement for enhancement should not be the sole basis for determining value.

Issue 2: Granting relief beyond the terms of prayer in appeal and directing assessment based on declared value:
The Tribunal pointed out that the importer had agreed to an enhancement of 50% and 25% for calculators with and without cartons, respectively. Despite the importer's agreement, the Tribunal directed the assessment to be completed based on the declared value, not the enhanced value. The Court noted that the Revenue's argument that the quotation price should be used for valuation was rejected. The Court agreed with the Tribunal's decision, emphasizing that the agreed enhancements should be considered in determining the value for assessment. The Court rejected the argument that the importer's concession was only for early clearance and directed the assessment to be completed without penal action based on the agreed enhancements.

In conclusion, the Court confirmed the Tribunal's decision to complete the assessment based on the declared value, considering the agreed enhancements by the importer. The Court emphasized the significance of the importer's statement for valuation and rejected the Revenue's argument to use the quotation price for valuation. The Court directed the assessment to proceed without penal action and confiscation of goods, based on the agreed enhancements.