2018 (6) TMI 1443 - AT - Customs

Valuation of imported goods - Ghana Sawn Teak - rejection of declared value - Revenue seeks to reject the declared value of Ghana Sawn Teak relying on the price published in Director General of Valuation data of Sawn wood and that of Cameroon/Malaysian origin - Held that - Neither description of goods nor the country of origin matches and in these circumstances, rejection of declared price cannot be sustained - The appellant has shown that at the material time, similar goods i.e. teak of Ghana origin, in various forms was being sized at US 201-205/CBM. In these circumstances, there is no merit in the impugned order - appeal allowed - decided in favor of appellant.

Summary

Issues:
- Rejection of declared value of imported "Ghana Sawn Teak"
- Application of Customs Valuation Rules, 1988
- Comparison with Director General of Valuation data
- Country of origin mismatch
- Availability of contemporary import data
- Provisional assessment bond release and refund

Analysis:

The appeal involved the rejection of the declared value of "Ghana Sawn Teak" imported by M/s. Vinod Agencies during a specific period under six Bills of Entry. The Revenue rejected the declared value based on the Director General of Valuation data of sawn wood from Cameroon and Malaysia, citing a Policy Bulletin from November 2002. The appellant argued that the rejection was unjustified as the data used for comparison was not for the same goods or country of origin. They contended that the goods imported were from Ghana, not Cameroon or Malaysia, and that the rejection lacked a valid basis. Additionally, the appellant presented evidence of contemporary import of Ghana teak at different values and highlighted the approval of a previous Bill of Entry for "Ghana Sawn Wood" at the declared value. The provisional assessment bond for the goods had also been released, and a refund granted.

The Tribunal, after considering the arguments, found that the Revenue's basis for rejecting the declared value was unfounded. The comparison with Director General of Valuation data of "Sawn wood" from different origins did not align with the imported goods' description and country of origin. The Tribunal noted that the appellant had demonstrated the contemporaneous import of similar goods, specifically teak of Ghana origin, at different values. Based on this, the Tribunal concluded that the rejection of the declared value was unjustified. Consequently, the impugned order was set aside, and the appeal was allowed. The decision was pronounced in court on 8.6.2018.