2018 (2) TMI 1729 - AT - Customs

Valuation of imported goods - copper scrap - enhancement of value on the basis of LME price - Held that - undisputedly, the appellant had imported the scrap against the aforesaid 19 bills of entry and through their letter to the department, they have accepted the enhanced value, but, later within the time limit prescribed for filing appeals, they filed appeals before the Ld. Commissioner (Appeals) challenging the said assessment order based on the LME price - the matter may be remanded to the Adjudicating authority to decide the issue on merit - appeal allowed by way of remand.

Summary

Issues:
1. Appeal against OIA NO. KDL-CUSTM-000-APP-370-388-14-15
2. Dispute over enhanced value based on LME price
3. Acceptance of enhanced value by the department
4. Request for remand to adjudicating authority

Analysis:
1. The appeals were filed against OIA NO. KDL-CUSTM-000-APP-370-388-14-15 dated 01.10.2014 passed by the Commissioner (Appeals) of Customs, Kandla. The appellant, represented by Shri Anand Nainawati, raised a procedural issue regarding 18 connected appeals arising from the same order-in-appeal, requesting all appeals to be heard together for disposal. The Revenue, represented by Shri S. N. Gohil, had no objection to hearing the connected appeals. Consequently, all 19 appeals were taken up together for disposal.

2. The appellant had imported copper scrap against 19 bills of entry, declaring the transaction value based on the respective bills of entry. The appellant contested the enhancement of value on the basis of LME price, arguing that they had paid the duty to expedite clearance and avoid demurrage. Despite filing appeals disputing the enhanced value, the Ld. Commissioner (Appeals) rejected the appeals, stating that since duty was paid without disputing the assessment, the appeals were not maintainable. The appellant contended that the filing of appeals itself indicated their grievance with the assessment and requested a remand to present their case on merit. The Revenue, however, argued that the appellant had accepted the enhanced value in a letter to the department, making the assessment final.

3. Upon hearing both sides and reviewing the records, the Tribunal observed that while the appellant had initially accepted the enhanced value, they later filed appeals challenging the assessment order within the prescribed time limit. The Tribunal acknowledged the conflicting arguments presented by both parties but ultimately decided in favor of the appellant. It was deemed in the interest of justice to remand the matter to the adjudicating authority to reexamine the issue on merit, providing the appellants with an opportunity to present their case. Therefore, the appeals were allowed by way of remand to the adjudicating authority for further consideration.

Conclusion:
The Tribunal allowed the appeals by remanding the matter to the adjudicating authority for a fresh decision on the dispute over the enhanced value of imported copper scrap based on LME price, providing the appellants with an opportunity to present their case on merit.