2017 (3) TMI 631 - AT - Customs

Valuation - import of rubber compound from USA as well as from South Africa - transaction value was enhanced on the basis of certain alleged emails of third party - Held that - Except for these emails, no other evidence was collected by the Department before demanding the duty. The statement of Shri Vijay Thukral was retracted immediately and it was not supported by any corroborative evidence - In the case of Sounds N Images vs Collector of Customs, 2000 (1) TMI 48 - SUPREME COURT OF INDIA , it was observed that under-valuation must be established through proper methods under the law and that burden cannot be shifted to the importer - in the instant case, no evidence has been adduced to corroborate the statement of Shri Vijay Thukral or the emails of a third party - demand set aside - appeal dismissed - decided against Department.

Summary

Issues: Duty demand based on alleged under-valuation of imported goods.

Analysis:
1. The Department challenged an order-in-original regarding duty demand on rubber compound imports. The assessee imported goods from the USA and South Africa. The Department compared the prices with another importer, leading to a duty demand discrepancy.

2. The Department argued under-valuation based on a statement by the assessee's proprietor and comparative pricing with a third party supplier. The assessee contended that a small percentage of imports were from the supplier in question, and the statement was retracted due to duress.

3. The Tribunal noted the lack of evidence beyond emails from the third party supplier. The retracted statement lacked corroboration, and the duty was demanded on all consignments despite only a minor portion being from the disputed supplier.

4. Citing legal precedents, the Tribunal emphasized the need for proper evidence to establish under-valuation. As no substantial proof supported the Department's claim, the impugned order was upheld, and the appeal was dismissed.