2018 (8) TMI 183 - AT - Customs

Valuation of imported goods - Aluminium Waste and Scrap - Rejection of declared value on the basis of a Circular issued by the Directorate General of Valuation being Circular LR No. 14/2005 dated 16.12.2005 - Held that - In an earlier set of appeals of M/s Sanjivani Non Ferrous Trading Pvt. Ltd. 2017 (3) TMI 359 - CESTAT ALLAHABAD , the Tribunal has considered the identical issue, where it was held that The assessable value has to be arrived at on the basis of the price which is actually paid and in a case the prices is not sole consideration or if the buyers and sellers are related persons then after establishing that the price is not sole consideration the transaction value can be rejected and taking the other evidences into consideration the assessable value can be arrived at - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Rejection of declared transaction value based on Circular LR No. 14/2005 dated 16.12.2005 by the Revenue.

Detailed Analysis:
The judgment by the Appellate Tribunal CESTAT ALLAHABAD involved the issue of the assessable value of imported Aluminium Waste and Scrap. The Revenue had rejected the declared transaction value citing Circular LR No. 14/2005 dated 16.12.2005 issued by the Directorate General of Valuation. The appellant contended that the case was solely based on this circular, arguing that such circulars have no legal validity for enhancing the assessable value without cogent evidence. Reference was made to previous Tribunal decisions where it was held that the assessable value should be determined based on the actual price paid, especially if the price is not the sole consideration or if the buyers and sellers are related. The Tribunal highlighted a previous case involving M/s Sanjivani Non Ferrous Trading Pvt. Ltd., where it was emphasized that the assessable value must be established on the actual price paid, and if the price is not the sole consideration, other evidence should be considered. The Tribunal rejected the enhancement of assessable value and restored the value as declared by the appellant in the Bills of Entry, setting aside the impugned Orders-in-Appeal and allowing all the appeals with consequential relief.

In conclusion, the Tribunal, in line with its previous decision in a similar case, ruled in favor of the appellant, setting aside the impugned orders and allowing all the appeals with consequential relief. The judgment reaffirmed the principle that the assessable value should be based on the actual price paid, and circulars like LR No. 14/2005 should not be the sole basis for rejecting declared values without proper evidence.