2017 (3) TMI 283 - AT - Customs

Valuation - polyester PVC coated fabrics - value of goods has been enhanced on the basis of assessed bill of entry of the imported goods and on the basis of DRI alert - Held that - neither transaction value of the goods have been rejected under Section 14 of the Customs Act, 1962 and there is no contravention import of such goods was found - the assessed bills of entry cannot be relied in the absence of the value of contemporaneous imports - reliance placed in the case of M/s. Sedna Impex India Pvt. Ltd. Garg Impex Versus CC, Faridabad 2016 (10) TMI 517 - CESTAT CHANDIGARH , where it was held that declared value cannot be enhanced on the basis of DRI alert - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against rejection of transaction value in import of polyester PVC coated fabrics under Customs Act, 1962.

Analysis:
The appellant imported polyester PVC coated fabrics and declared the transaction value in the bills of entry, which was loaded by the adjudicating authority. The appellant contended that the assessment at the loaded value contradicted Customs Act, 1962 and Customs Valuation Rules, 2007. The appellant argued that the declared quantity was correct, and the value was enhanced based on alerts and circulars, which is impermissible without rejecting the transaction value under Section 14 of the Customs Act. The appellant cited a Tribunal case to support this argument.

The respondent argued that value enhancement based on alerts and circulars is allowed, referring to previous cases. However, the Tribunal noted that the value could not be enhanced without rejecting the transaction value under Section 14 of the Customs Act. The Tribunal cited a case where the declared value was accepted as the transaction value, emphasizing the importance of the declared value over assessed values for comparison in such cases.

The Tribunal further discussed the inadmissibility of enhancing value based on assessed bills of entry without rejecting the transaction value. It highlighted the need to consider the declared value as the transaction value and not rely solely on assessed values. The Tribunal referenced previous cases where value enhancements were set aside due to improper reliance on assessed values without rejecting the declared transaction value.

In conclusion, the Tribunal held that the value of the imported goods cannot be enhanced based on alerts, circulars, or assessed bill of entry without rejecting the transaction value under Section 14 of the Customs Act. The Tribunal set aside the impugned orders, allowing the appeals with consequential relief, if any. The Tribunal emphasized the importance of rejecting the transaction value before enhancing the assessed value and highlighted the significance of considering the declared value as the transaction value for proper valuation of imported goods.