2018 (4) TMI 1252 - AT - Customs

Valuation - enhancement of value of imported goods - consignment of 21880 pcs. of carbide tips - contemporaneous imports - Held that - Unless the department adduces evidence of a contemporaneous imports price from a manufacturer of carbide tips for goods of the same specifications, the enhancement in value cannot be made in their case. In the instant case, the invoices is based on specification of the tips. Therefore, the DOV data cannot be confirmed the basis of the value of authorised carbon tips and all different specifications imported by the respondent Appeal dismissed - decided against Revenue.

Summary

Issues:
1. Valuation of imported goods based on declared value.
2. Admissibility of enhancement in value without contemporaneous import price evidence.
3. Genuineness of invoices for imported goods.

Valuation of imported goods based on declared value:
The appeal was filed by the Department against the Order-in-Appeal passed by the Commissioner of Customs (Appeals), Kolkata, where the declared value of a consignment of carbide tips imported directly from China was accepted. The Tribunal noted that the declared value was based on the unit price per tip mentioned in the invoice, with different prices for different types of tips. It was emphasized that unless evidence of contemporaneous import prices for goods of the same specifications was provided, an enhancement in value could not be justified on a weight basis. The Tribunal upheld the decision based on the specifications mentioned in the invoices and the absence of evidence to support an increase in value solely based on weight.

Admissibility of enhancement in value without contemporaneous import price evidence:
The Tribunal highlighted the importance of contemporaneous import price evidence from a manufacturer of carbide tips to justify any enhancement in value. In the absence of such evidence, the Tribunal held that the enhancement could not be made solely on a weight basis. The Tribunal referred to a previous case law to support this principle, emphasizing the need for specific and relevant evidence to support any valuation adjustments.

Genuineness of invoices for imported goods:
The Tribunal found that the invoices in the present case were based on the specifications of the imported tips, and the word 'imported directly' was found to be genuine. No material was presented to challenge the authenticity of the invoices. Referring to a decision by the Hon'ble Supreme Court in a previous case, the Tribunal emphasized the importance of upholding genuine transactions and found no reason to interfere with the order accepting the declared value based on the specifications mentioned in the invoices. Consequently, the appeal filed by the Department was dismissed, and the original order was sustained based on the genuineness of the invoices and the lack of evidence to support an increase in value.

This detailed analysis of the judgment covers the issues related to the valuation of imported goods, the requirement for contemporaneous import price evidence, and the genuineness of invoices, providing a comprehensive understanding of the Tribunal's decision in the case.