2018 (5) TMI 996 - AT - Customs

Valuation of imported goods - Gambier Extracts - enhancement of value based on contemporaneous bills of entry - principles of natural justice - Held that - the appellant has made detailed submission with some other Bills of Entry of the relevant period, wherein the value US 1350 PMT was declared. However, the same was not properly considered by the adjudicating authority as well as the Commissioner (Appeals) - also, the copy of sole reliance of the Revenue on contemporaneous Bills of Entry of February and March, 1998 were not provided to the appellant. Thus, the adjudicating authority has violated the principles of natural justice. The adjudication was not done in the proper manner - matter remanded to the adjudicating authority for passing a fresh order - appeal allowed by way of remand.

Summary

Issues:
1. Valuation of imported Gambier Extracts
2. Allegation of violation of principles of natural justice

Valuation of imported Gambier Extracts:
The case involved the import of Gambier Extracts from Indonesia by the appellants, with a declared value of US$ 1400 PMT. Following an investigation, the Revenue applied a price of US$ 2200 PMT based on contemporaneous Bills of Entry from February and March 1998. The adjudicating authority enhanced the value to US$ 2200 PMT, leading to a demand of &8377; 1,50,288. The appellant contended that the contemporaneous imports relied upon were not from the same period as their import in May and June 1998. They argued that the value difference was due to a drastic reduction in the value of the Indonesian currency during the relevant period. The appellant also presented other invoices for Indonesian origin at US$ 1350 PMT, which were not adequately considered by the authorities. The Tribunal found that the adjudication was not done properly, as the appellant's submissions and documents were not fully considered, and the copies of the contemporaneous Bills of Entry were not provided to the appellant. Consequently, the Tribunal set aside the impugned order and remanded the matter to the adjudicating authority for a fresh decision after considering all relevant submissions and documents. The appeal was allowed by way of remand, with the adjudicating authority instructed to issue a fresh order within three months and grant a personal hearing to the appellant.

Allegation of violation of principles of natural justice:
The appellant argued that the adjudicating authority violated the principles of natural justice by not providing copies of the contemporaneous Bills of Entry and not fully considering the appellant's submissions and additional invoices. The Tribunal agreed with this contention, finding that the appellant's right to a fair hearing was compromised. As a result, the Tribunal set aside the previous order and remanded the matter for a fresh decision, emphasizing the importance of adhering to natural justice principles in the adjudication process. The adjudicating authority was directed to conduct a proper evaluation, consider all relevant documents and submissions, and grant a personal hearing to the appellant before issuing a new order within three months.