2019 (8) TMI 1559 - AT - Customs

Principles of Natural Justice - Valuation of imported goods - Milling Washing Machine and Automatic Winding Machine - enhancement of declared value - Section 14 of the Customs Act, 1962 and Rule 3 of the Customs Valuation Rules, 2007 - HELD THAT - The learned Commissioner (Appeals) has mainly relied upon the certificate issued by Shri Mohan Kamble, Chartered Engineer for allowing the appeal in favour of the department. The fact is not under dispute that the appellant was not provided with such certificate before adjudication of the dispute at the first appellate stage and that such certificate was supplied to the appellant along with the impugned order. Thus, it is evident that the principles of natural justice have been violated inasmuch as the appellant was not provided with effective remedy for presenting its case before the lower appellate authority. The matter should be remanded to the learned Commissioner (Appeals) for a decision on merits on the basis of the submissions to be made by the appellant in context with the certification by the Chartered Engineer and other aspects involved in the present case - Appeal allowed by way of remand.

Summary

Issues: Violation of principles of natural justice, assessment of duty liability based on certificate of Chartered Engineer, appeal against assessed Bills of Entry, determination of transaction value for duty liability.

In this case, the appellant imported machinery and filed Bills of Entry for duty assessment, which were appealed against by the department. The department argued that the machinery's value should include dismantling and other charges, and the local Chartered Engineer's certificate should be considered for duty computation. The department also claimed that the appellant did not submit the agreement with the overseas supplier for determining the correct transaction value. The Commissioner (Appeals) allowed the department's appeal, but the appellant challenged this decision before the Tribunal.

The appellant contended that the Chartered Engineer's certificate was not provided before the appeal was decided, thus violating natural justice. They argued that the declared value should be accepted as the transaction value for duty calculation, meeting the requirements of the Customs Act and Valuation Rules. On the other hand, the Revenue supported the impugned order's findings.

The Tribunal noted the violation of natural justice as the Chartered Engineer's certificate was not given to the appellant before the appeal decision. Consequently, the matter was remanded to the Commissioner (Appeals) for a fresh decision based on the appellant's submissions regarding the certificate and other aspects. The impugned order was set aside, and the appeal was allowed for a reevaluation of all issues, with the appellant granted a personal hearing before the fresh decision.