2017 (3) TMI 1016 - AT - Customs

Valuation of imported goods - correctness in enhancement of value - PVC Resin Formolon Off Grade (Paste Grade) - Held that - Rule 12 of the Customs Valuation Rules, 2007 provides for the rejection of declared value by the importer or his agent on valid grounds - the assessing authority has not provided the reasons/provisions of the Customs Act to the assessee-Respondent under which the transaction value declared by them was rejected - enhancement of value not correct - appeal dismissed - decided against Revenue.

Summary

Issues:
Enhancement of assessable value without proper rejection of transaction value under Customs Valuation Rules, 2007.

Analysis:

Issue 1: Enhancement of assessable value without proper rejection of transaction value under Customs Valuation Rules, 2007

The appeal was filed by the Department against the order-in-appeal passed by the Commissioner of Customs (Appeals), New Delhi. The case involved the import of "PVC Resin Formolon Off Grade (Paste Grade)" where the declared value was increased by the assessing authority from 825 USD per MT to 1100 USD per MT. The Department contested this enhancement. It was noted that the assessable value was raised without validly rejecting the transaction value, which was based on a manufacturer's invoice. The Customs Valuation Rules, 2007, specifically Rule 12, allow for the rejection of declared value by the importer or their agent on valid grounds. However, in this case, the Commissioner (Appeals) found that the assessing authority did not provide proper reasons or provisions of the Customs Act to the assessee-Respondent for rejecting the declared transaction value. Consequently, the Commissioner (Appeals) set aside the enhancement. The appellate tribunal, after considering the arguments presented by the Department's representative, upheld the decision of the Commissioner (Appeals) as there were no valid grounds to interfere with the impugned order. Thus, the appeal filed by the Department was dismissed, and the decision of the Commissioner (Appeals) was sustained.

This detailed analysis covers the issues involved in the legal judgment, focusing on the enhancement of assessable value without proper rejection of the transaction value under the Customs Valuation Rules, 2007. The judgment provides a clear understanding of the case, the arguments presented, and the decision rendered by the appellate tribunal.