9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 182 - AT - CustomsValuation - arbitrary enhancement of the value of import goods - 100% EOU - supply to related parties - the adjudicating authority has enhanced the value by 100% for the purpose of finalization of assessment under Rule 8 of Customs Valuation Rules, 1988. - Held that - Even though the respondent has not submitted certain documents but it could not be established on the basis of any material that the value of imported goods has been influenced due to the relationship between the foreign supplier and the respondent. There is no case that the respondent has paid any extra consideration to the foreign supplier. The department has also not made out a case that any contemporaneous import exists. - the adjudicating authority enhanced the value arbitrarily. - Decided against the revenue.
Issues:
1. Valuation of imported goods for a 100% EOU under Customs Valuation Rules, 1988. 2. Impact of relationship between the foreign supplier and the respondent on the declared price. 3. Consideration of valuation for achieving net foreign exchange by the 100% EOU. 4. Arbitrary enhancement of value by the adjudicating authority. Analysis: Issue 1: Valuation of imported goods for a 100% EOU under Customs Valuation Rules, 1988 The appeal challenged Order-in-Appeal No. 223/2005 MCH, where the Commissioner (Appeals) allowed the appeal of the appellant, a 100% EOU importing goods for valve manufacture. The adjudicating authority enhanced the value by 100% under Customs Valuation Rules, 1988. However, the Commissioner (Appeals) set aside the order, noting that as a 100% EOU, the imported goods were duty-free, hence valuation had no impact as they were not dutiable. The Tribunal upheld this reasoning, emphasizing the significance of correct import value for achieving net foreign exchange by the 100% EOU. Issue 2: Impact of relationship between the foreign supplier and the respondent on the declared price The adjudicating authority had enhanced the value due to the relationship between the appellant and the supplier, a related entity. However, the Tribunal found no evidence that the relationship influenced the declared price. It was noted that there was no indication of extra consideration paid or contemporaneous imports. Thus, the Tribunal agreed with the Commissioner (Appeals) that the enhancement was arbitrary and not based on valid grounds. Issue 3: Consideration of valuation for achieving net foreign exchange by the 100% EOU The Revenue argued that even though the goods were under exemption, their value was relevant for achieving net foreign exchange by the 100% EOU. The Tribunal concurred, highlighting that the value played a crucial role in fulfilling the obligation of using the imported goods in the manufacture of final products for export, even if no duty was paid at the time of import. Issue 4: Arbitrary enhancement of value by the adjudicating authority The Tribunal found the adjudicating authority's 100% enhancement of value to be arbitrary. Despite the lack of certain documents from the appellant, it was not proven that the relationship with the supplier impacted the price. The Tribunal emphasized the importance of correct valuation for 100% EOU purposes and upheld the Commissioner (Appeals) decision, dismissing the Revenue's appeal. In conclusion, the Tribunal upheld the Commissioner (Appeals) decision, emphasizing the significance of correct valuation for achieving net foreign exchange by a 100% EOU and rejecting the arbitrary enhancement of value by the adjudicating authority.
|
