2018 (3) TMI 1855 - AT - Customs

Valuation of imported goods - zinc skimmings - enhancement of declared value, without rejection of transaction value - case of appellant is that no valid reasons have been given by the assessing officer to enhance the value - HELD THAT - Without rejecting the transaction value, it was not fair on the part of the Revenue to enhance the same. The appellate authority also observed that there was not a single contemporaneous evidence of comparable import noticed by the Custom House and as such the value enhancement was unjustified. Admittedly, the quantity imported by the respondent was a bulk quantity and they had entered into a negotiated price with their foreign supplier for huge quantity of the goods. There is also no evidence on record to show that the value entered by the importer with the supplier of the goods is not the correct value - the value enhancement was not on the basis of any concrete evidence. Appeal dismissed - decided against Revenue.

Summary

Issues:
- Dispute over the enhanced value of imported goods
- Validity of the assessing officer's decision
- Commissioner (Appeals) ruling on the value enhancement

Dispute over the enhanced value of imported goods:
The case involved a dispute regarding the value of zinc skimmings imported by the respondent, initially declared at US$ 484.20 per MT but enhanced by the assessing officer to US$ 613.52 per MT. The Commissioner (Appeals) observed that the assessing officer provided no valid reasons for the increase and noted that the appellant had consistently imported goods at the declared value for several years. The absence of comparable import evidence and the negotiated price with the foreign supplier for a bulk quantity further supported the appellant's position.

Validity of the assessing officer's decision:
The assessing officer's decision to enhance the value of the imported goods was challenged before the Commissioner (Appeals) based on the lack of concrete evidence to support the increase. The Commissioner found the value enhancement unjustified, especially considering the long-standing transaction history at the declared value and the absence of contemporaneous evidence to justify the change. The Commissioner set aside the assessment order, highlighting the importance of rejecting the transaction value before making any enhancements.

Commissioner (Appeals) ruling on the value enhancement:
The Commissioner (Appeals) decision to reject the Revenue's appeal was based on the lack of concrete evidence supporting the value enhancement. The appellate authority emphasized the importance of justifying any increase in value with valid reasons and contemporaneous evidence of comparable imports. The absence of such evidence led to the rejection of the Revenue's appeal, as the value enhancement was deemed unjustified and not based on any substantial grounds. The Tribunal agreed with the Commissioner's findings and upheld the decision to set aside the value enhancement, concluding that the Revenue's appeal lacked merit.

This detailed analysis of the judgment highlights the key issues of the dispute, the reasoning behind the decisions made by the assessing officer and the Commissioner (Appeals), and the ultimate outcome of the case as determined by the Tribunal.