2018 (11) TMI 1684 - AT - Customs

Valuation of imported goods - titanium dioxide CR-50 grade - rejection of declared value - contemporaneous price adopted for assessment - invocation of rule 4(1)(A) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - Principles of natural justice - HELD THAT - The appellant herein had not been placed on notice about the availability of contemporaneous import prices or the details pertaining to those imports. An assessment order is no substitute for show cause notice or adequate for compliance with the principles of natural justice. Impugned order set aside - matter remanded back to the original authority to furnish the copies of the documents and other evidence to enable a proper defence of the allegation of mis-declaration - appeal allowed by way of remand.

Summary

Issues:
1. Assessment based on enhanced value without sufficient evidence.
2. Compliance with principles of natural justice in re-determination of assessable value.

Analysis:
1. The appeal was filed against the order-in-appeal upholding the original authority's decision on assessment of 'titanium dioxide CR-50 grade' imports. The original authority rejected the declared value of US $1940 per metric tonne and substituted it with US $2100 per metric tonne due to price fluctuation. The Tribunal noted that the evidence for the enhanced value was provided after the order-in-original was issued, violating the principles of natural justice. The appellant's submission on lack of evidence was dismissed based on a corrigendum issued post the original order.

2. The Tribunal referred to a previous case where proceedings were invalidated due to non-availability of contemporaneous import and price information at the initiation of proceedings. In the present case, the evidence supporting the enhanced value was only made available after the original order, and there was no mention of contemporaneous import prices in the findings. The Tribunal held that the appellant was not informed about the import prices or details, which is essential for compliance with natural justice principles. Consequently, the impugned order was set aside, and the matter was remanded to the original authority for providing necessary documents to enable a proper defense against the mis-declaration allegation.

This detailed analysis of the judgment highlights the issues of assessment based on insufficient evidence and the importance of complying with principles of natural justice in re-determination of assessable value. The Tribunal's decision emphasizes the need for procedural fairness and adequate disclosure of information to ensure a fair opportunity for defense in customs valuation cases.