2017 (9) TMI 902 - AT - Customs

Valuation of imported goods - used Konica Minilab System comprising of Printer processor and Film processer with standard accessories - Held that - there will be no other option and further since the value declared by the importer has not been disproved in any other manner by the department, the same will then necessarily have to be accepted as the transaction value of the goods. The import has been made in the year 1996 and this dispute has been festering for over two decades. In fact this is the second time that the matter has been come up to the Tribunal. In spite of the clear and cogent directions of the Hon ble High Court, the denovo adjudication, in our view is found wanting and has not addressed the evidences provided by the importer. The declared values have not been satisfactorily demolished or disproved by the department, as per the parameters laid down by the Hon ble High Court, there will only be one option left, viz., to accept the declared invoice/imported price as the transaction value and calculate duty liability accordingly. This, in our view is the only way to bring closure to this abssymally long pending dispute. The import/invoice values declared by the appellant as the basis of arriving at the assessable value accepted - appeal allowed - decided in favor of appellant.

Summary

Issues: Customs valuation rules interpretation, reliance on Chartered Engineer's Certificate, comparison of new and used machine values, consideration of import data, methodology for determining assessable value.

Customs Valuation Rules Interpretation:
The case involved a dispute over the valuation of imported machinery by M/s. Foto Link. The appellant argued that the Customs Valuation Rules clearly state that the transaction value should be the basis for determining the value of imported goods. They contended that since the machines were second-hand, no manufacturer's invoice could be produced, and thus, the adjudicating authority erred in rejecting the transaction value and switching to Rule 8. The appellant emphasized the importance of the Chartered Engineer's Certificate provided as evidence of the value and year of manufacture.

Reliance on Chartered Engineer's Certificate:
The appellant had submitted a Chartered Engineer's Certificate from the supplier, which confirmed the value and year of manufacture of the imported machinery. The appellant argued that this certificate should have been given due consideration in determining the assessable value of the goods.

Comparison of New and Used Machine Values:
The appellant contended that comparing the value of the imported second-hand machines to the price of new machines was unrealistic, as new machines are technologically upgraded. They argued that the value declared by the appellant should have been followed, as it reflected the actual payments made towards the cost of the goods.

Consideration of Import Data:
During the re-adjudication process, the appellant provided details of imports of similar goods to support their valuation. However, the adjudicating authority did not take this import data into consideration, leading to discrepancies in the determination of the assessable value.

Methodology for Determining Assessable Value:
The Tribunal had previously ruled on specific values for the machinery, which were later set aside by the High Court. The High Court directed the Commissioner to fix the value of the goods based on available evidence and invoices. However, the methodology adopted by the adjudicating authority for determining the assessable value was found to be flawed, as it did not adequately address the evidence provided by the importer.

In conclusion, the Tribunal set aside the impugned order and allowed the appeal, ordering the acceptance of the import/invoice values declared by the appellant as the basis for determining the assessable value and duty liability. The decision aimed to bring closure to the prolonged dispute by following the parameters laid down by the High Court and giving due consideration to the evidence presented by the importer.