2017 (9) TMI 1135 - AT - Customs

RES IPSA LOQUITUR - valuation - It is the claim of the assessee-Appellants that the second valuation report was never made available to them and the Department has charged the Customs duty on the basis of original valuation report and imposed penalties - Held that - no record is available with the Department pertaining to the said statement and second valuation report - As per the maxim RES IPSA LOQUITUR, the facts of the case speak itself - the Department is directed to re-compute the duty on the basis of the second valuation report which is mentioned in the affidavit of the approved valuer i.e. 2,03,752.10 US and decide the issue afresh - appeal allowed by way of remand.

Summary

Issues:
- Discrepancy in valuation of imported goods
- Availability of second valuation report
- Duty calculation based on correct valuation

Analysis:
The appeal was filed against the Order-in-Original related to the import of Polished Emerald Stones. The assessee-Appellants imported stones from Hong Kong and declared a value, which was later rectified due to a calculation mistake. Customs authorities called an approved valuer who initially assessed the value in artificial light. Subsequently, a second valuation was claimed to have been done in natural light, but the report was not provided to the assessee-Appellants. The Department charged duty based on the original valuation and imposed penalties, leading to the appeal.

During the hearing, the counsel for the assessee-Appellants argued that the duty should be based on the second valuation report, which was allegedly done in natural light. The Department, however, stated that no record of the second valuation existed. The Tribunal noted that in a previous instance, it had directed the Department to provide the second valuation report and a statement from the foreign supplier, but the Department claimed to have no such records. In light of this, the Tribunal applied the maxim RES IPSA LOQUITUR, indicating that the facts speak for themselves. Consequently, the Tribunal modified the impugned order and directed the Department to re-compute the duty based on the second valuation report mentioned in the valuer's affidavit. The Department was instructed to decide the issue afresh, allowing the assessee-Appellants a reasonable opportunity to present their case and submit additional evidence if necessary.

Therefore, the appeal was allowed by way of remand, emphasizing the importance of accurate valuation and providing a fair opportunity for the parties involved to present their case based on the correct valuation of the imported goods.