2017 (5) TMI 936 - AT - Customs

Valuation - rough marble blocks imported from Turkey - Revenue took up the matter for adjudication on the ground that the value declared by the appellant was less as also on the ground that the condition of the import license stand violated - Held that - it is well settled law that NIDB data cannot be considered as the reliable source for the purpose of enhancement. We find that the issue is no more res integra and has been settled by umpteen number of decisions of the Tribunal - an identical dispute was the subject matter of the Tribunal s decision in the case of R K Marble Pvt Ltd. Vs. CCE Jaipur 2009 (1) TMI 648 - CESTAT, NEW DELHI , and the enhancement of the value based upon the weekly average price was held as bad in law. Contravention of the licenses - Held that - As per the licenses given to the appellant, the imports should be at the floor price of USD 275 per MT - the Ld. Advocate appearing for the appellant has accepted the violation of the condition of the policy - we uphold the confiscation and imposition of penalty - he redemption fine is reduced from ₹ 5.40 lakhs to 1 lakh and the penalty from ₹ 1 lakh to ₹ 50000. Appeal allowed - decided partly in favor of appellant.

Summary

Issues: Valuation of imported goods below floor price as per import license, Contravention of import license conditions

Valuation of Imported Goods Below Floor Price:
The appellant imported rough marble blocks below the floor price specified in the import license, leading to a dispute with the Revenue. The original adjudicating authority enhanced the assessable value based on NIDB data and weekly average prices, resulting in the imposition of a redemption fine and penalty. The Commissioner (A) upheld this decision. However, the Tribunal referred to a previous case involving a similar dispute and held that the enhancement of value based on weekly average prices was not legally justified. The Tribunal emphasized that the onus to prove undervaluation lies with the Revenue and rejected the reliance on NIDB data for valuation. Citing precedents, the Tribunal concluded that the transaction value declared by the appellant should be accepted as the assessable value for customs duty payment.

Contravention of Import License Conditions:
The import license required the goods to be imported at a specific floor price, which the appellant failed to meet. The Tribunal acknowledged the violation of the license condition and upheld the confiscation of goods and imposition of a penalty. Following a previous ruling in a similar case, the Tribunal reduced the redemption fine and penalty imposed on the appellant. Despite accepting the violation, the Tribunal adjusted the financial penalties based on legal precedents.

In summary, the Tribunal ruled in favor of the appellant regarding the valuation of imported goods, rejecting the enhanced value determined by the Revenue based on NIDB data and weekly average prices. The Tribunal emphasized the importance of transaction value and precedent in such cases. Additionally, the Tribunal upheld the confiscation and penalty for contravening the import license conditions but adjusted the financial penalties in line with legal precedents.