2018 (1) TMI 1541 - AT - Customs

Valuation of imported goods - Aluminium Waste and Scrap - rejection of declared value on the basis of a Circular issued by the Directorate General of Valuation being Circular LR No. 14/2005 dated 16.12.2005 - HELD THAT - The issue decided in the case of M/S SANJIVANI NON FERROUS TRADING PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, NOIDA 2017 (3) TMI 359 - CESTAT ALLAHABAD where it was held that the assessable value has to be arrived at on the basis of the price which is actually paid and in a case the prices is not sole consideration or if the buyers and sellers are related persons then after establishing that the price is not sole consideration the transaction value can be rejected and taking the other evidences into consideration the assessable value can be arrived at. Such exercise has not been done in these cases on hand. Inasmuch as the issue stands decided in favour of the appellant by above referred decision of the Tribunal, impugned order set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Assessable value of imported Aluminium Waste and Scrap based on a Circular issued by the Directorate General of Valuation.

Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD involved the issue of the assessable value of imported Aluminium Waste and Scrap, which was disputed by the Revenue based on a Circular issued by the Directorate General of Valuation. The appellant argued that such Circulars have no legal validity and cannot be used to enhance the assessable value without cogent evidence. Reference was made to previous Tribunal decisions, including one related to M/s Sanjivani Non Ferrous Trading Pvt. Ltd., where it was held that the assessable value should be determined based on the actual price paid, especially if the price is not the sole consideration or if the buyers and sellers are related. The Tribunal rejected the enhancement of assessable value in the current case, citing the need for proper examination of evidence before making such decisions. Therefore, the Tribunal set aside the impugned orders and allowed all the appeals in favor of the appellant, granting consequential relief as per the law.

In conclusion, the Tribunal's decision was based on the principle that assessable value should be determined on the basis of the actual price paid, as per the provisions of the Customs Act, 1962. The Tribunal emphasized the importance of proper examination of evidence and rejected the use of Circulars without sufficient supporting evidence. By setting aside the impugned orders and allowing the appeals, the Tribunal upheld the appellant's contention and granted consequential relief accordingly.