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2017 (11) TMI 47 - AT - CustomsMisdeclaration of valuation description and quantity of imported goods - goods imported in the Semi Knock Down (SKD) conditions - Held that - value of some of the items like parts of the calculators was not ascertained during the market enquiry. It appears that the market enquiry conducted by the Department has been questioned by the respondent as no chart of detailed process was supplied to the respondent. Regarding the valuation of the imported goods, the Hon ble Supreme Court in the case of Eicher Tractors Ltd. Vs. CC Mumbai 2000 (11) TMI 139 - SUPREME COURT OF INDIA has held that It is only when the transaction value under Rule 4 is rejected, then under Rule 3(ii) the value shall be determined by proceeding sequentially through Rules 5 to 8 of the Rules. Conversely if the transaction value can be determined under Rule 4(1) and does not fall under any of the exceptions in Rule 4(2), there is no question of determining the value under the subsequent Rules. The goods were in the SKD conditions for which proper entry or enquiry was neither possible nor made - impugned order sustained - appeal dismissed - decided against Revenue.
Issues: Mis-declaration of valuation, quantity, and description of imported goods in Semi Knock Down (SKD) conditions.
In the present case, the Department filed an appeal against the order dated 27.12.2016, where the respondent had imported various goods in SKD conditions. The Adjudicating authority alleged mis-declaration by the respondent regarding the valuation, quantity, and description of the imported goods. The Department demanded duty and interest, but the Commissioner (A) set aside the demand, leading to the Department's appeal. The main issue revolved around the mis-declaration in respect of valuation, quantity, and description of goods in SKD conditions. During the proceedings, it was argued that a market enquiry was conducted by the Department, but the value of certain items was not ascertained properly. The respondent questioned the market enquiry process, highlighting the lack of detailed information provided to them. Reference was made to the Customs Valuation Rules, specifically Rule 3(i) and Rule 4(1), emphasizing the acceptance of the price actually paid or payable for the goods as the transaction value, subject to certain exceptions outlined in Rule 4(2). The Supreme Court's observations in the case of Eicher Tractors Ltd. Vs. CC Mumbai were cited to support the argument. Based on the Supreme Court's ruling and the specific circumstances of the case, it was concluded that the goods were in SKD conditions, making proper valuation entry or enquiry impractical. Following the legal principles and considering the facts, the Tribunal found no justification to overturn the Adjudicating authority's decision. Therefore, the appeal filed by the Department was dismissed, upholding the earlier order in favor of the respondent.
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