2013 (11) TMI 598 - AT - Customs

Stay of refund of excess duty paid - Valuation of goods - Mis declaration of goods - Enhancement in valuation of goods due to comparable goods - Held that - goods like textile fabrics cannot be compared without samples from both consignments being seen together or in cases where the supplier of the goods and his description and all relevant parameters for determining value are same and period of import is contemporaneous. Comparison with one of entry in a database without adequate specification of parameters can lead to unjustifiable results - Therefore there is no need to stay the operation of the order - Stay of refund denied.

Summary

Issues: Misdeclaration of value goods, Misdeclaration in transaction value, Comparable goods valuation, Adjudication authority's order, Appeal by Revenue, Stay petition for refund of excess duty paid.

The judgment dealt with a case where the respondent imported fabrics declared as "Interlining Fabric (Flock)" at a certain value, leading to suspicion of misdeclaration. Customs officers confirmed the goods matched the declaration. However, the Revenue suspected undervaluation based on comparison with similar goods imported at Nava Sheva Port, Mumbai at a higher value. The adjudicating authority increased the value, leading to duty demand. The Commissioner (Appeals) overturned this decision citing lack of evidence on similarity, commercial level, and description of goods. The Revenue appealed this decision, seeking a stay on refund of excess duty paid.

The Revenue argued that the mismatch between declaration and invoice description indicated intent to undervalue, despite a tenfold difference in quantity between the Mumbai consignment and the impugned goods. They claimed the goods from Mumbai were similar. The Respondent's counsel reiterated the Commissioner's stance, emphasizing the substantial quantity imported and lack of evidence supporting undervaluation. They warned against prejudice if the refund was stayed.

The Tribunal noted that comparing textile fabrics required physical samples or identical parameters. They found comparing entries in a database without proper specification could lead to unjust results. Consequently, they rejected the Revenue's stay petition, allowing the Commissioner's decision to stand.