2012 (5) TMI 521 - AT - Central Excise

Valuation - Enhancement in valuation - Commissioner set aside enhancement - Held that - The transaction value was rejected without any evidence to suspect bona fide nature of the transaction value. Further the goods are of a type where no other goods could be compared to the goods imported on a reasonable basis - Decided against Revenue.

Summary

Issues:
1. Confiscation of imported goods under Section 111(d) of the Customs Act, 1962.
2. Increase in the assessed value of imported goods by custom officers.
3. Legality of the order passed by the Commissioner (Appeals) against adjudication orders.
4. Contemporaneous imports and rejection of transaction value.
5. Appealability of assessment order on the Bill of Entry.
6. Comparison of old and used computers with contemporaneous imports.
7. Rejection of transaction value without evidence.

Analysis:

1. The case involved the confiscation of imported old and used CPU, monitors, and power supply system of computers under Section 111(d) of the Customs Act, 1962, due to a violation of the import policy. The Commissioner of Customs adjudicated the matter by confiscating the goods, allowing redemption on payment of a fine, and imposing a penalty on the importer.

2. Subsequently, custom officers increased the assessed value of the goods, alleging incorrect declaration. The Respondents appealed this assessment order before the Commissioner (Appeals).

3. The Revenue filed an appeal against the Commissioner (Appeals) order, arguing that it was not legally sustainable as it went against the adjudication orders. The Revenue also contested the rejection of transaction value based on contemporaneous imports and NIDB data.

4. Revenue further argued that setting aside the previous order would also nullify the fine and penalty imposed for violating the import policy, which was not the subject of the appeal before the Commissioner (Appeals).

5. The Tribunal noted that the appeal before them only concerned the increase in the assessable value, not the confiscation or penalties imposed by the Commissioner of Customs. The assessment order on the Bill of Entry was deemed appealable, and the Commissioner (Appeals) decision was upheld.

6. The Tribunal considered the uniqueness of old and used computers, stating that comparison with contemporaneous imports was not straightforward due to varying brands, manufacturing years, and conditions. Without evidence of overpayment to the supplier, the rejection of the transaction value was deemed unjustified.

7. Ultimately, the Tribunal found the Commissioner (Appeals) order to be legal and proper, rejecting the Revenue's appeal based on the lack of evidence to question the transaction value's genuineness in the absence of comparable goods.

This detailed analysis covers the various issues addressed in the judgment, providing a comprehensive overview of the legal reasoning and conclusions reached by the Tribunal.