9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 881 - AT - CustomsImport of ball bearings of KG brand from China - Enhancement in value of goods - Held that - Commissioner of Customs (Imports), Mumbai has issued the guidelines for adopting the assessable value of the lesser known brand Chinese brand therein. Such guidelines have been issued after taking into account the average cost of material, wastage, manufacturing cost and other charges etc. - in the light of the said guidelines issued by the Commissioner and the decision in the case of Techno Marketing 2003 (11) TMI 384 - CESTAT, NEW DELHI upholding the applicability of such guidelines, we are of the view that the adoption of the assessable value at the rate of US 1.60 per kg cannot be faulted - appellate authority has taken into consideration the import of ball bearings from the same country i.e. China by other importers, assessed to duty at the rate of US 1.60 per kg. When the large majority of the importers were conforming to such norms, there is no special reason to adopt a lower value for the imports made by the appellant - Decided against assessee.
Issues: Valuation of imported ball bearings based on guidelines issued by the Commissioner of Customs (Imports), Mumbai.
Comprehensive Analysis: Issue 1: Valuation Discrepancy The appellants imported ball bearings from China and declared the assessable value ranging from US $ 0.056 to US $ 0.153 per piece. The Revenue increased the valuation based on a circular issued by the Commissioner of Customs (Imports) Bombay, setting a value of US $ 1.60 per kg for Chinese origin ball bearings of lesser-known brands. The appellant challenged this valuation as they valued the goods on a piece-wise basis according to the invoice, while the Revenue assessed them on a per kilogram basis. Issue 2: Guidelines by Commissioner of Customs The Commissioner of Customs (Imports), Mumbai issued guidelines for valuing ball bearings, setting a minimum cut-off price of USD 2 per kg initially, which was later reduced to US $ 1.60 per kg for unpopular Chinese brand bearings. These guidelines were formulated after extensive studies considering raw material costs, manufacturing expenses, and feedback from various Customs departments. The Tribunal had previously upheld the validity of such guidelines in a similar case involving loudspeakers. Issue 3: Legal Precedents and Manufacturer's Invoice The Tribunal considered legal precedents where the Supreme Court emphasized that decisions should be context-specific. The High Court of Calcutta highlighted the importance of considering factual backgrounds before following judgments. In the case of M/s. Sai Impex, the Supreme Court deliberated on the genuineness of manufacturer's invoices, emphasizing the need to prevent under-valuation, especially in goods like ball bearings. Issue 4: Tribunal's Decision After reviewing the submissions, the Tribunal found the Commissioner's guidelines for valuing lesser-known Chinese brand ball bearings to be legally sound. Citing a previous case, the Tribunal upheld the applicability of such guidelines and concluded that the assessable value of US $ 1.60 per kg could not be challenged. Additionally, considering that other importers from China were assessed at the same rate, there was no justification for a lower valuation for the appellant's imports. In conclusion, the Tribunal rejected the appeal based on the adherence to the guidelines issued by the Commissioner of Customs (Imports), Mumbai, the legal precedents regarding valuation discrepancies, and the consistency in valuation rates for similar imports from China.
|
