2018 (9) TMI 1082 - AT - Customs

Valuation of imported goods - polished small size cutter marble slabs - enhancement of value - revision of value under rule 7(2) of Customs Valuation (Determination of Price of Imported Goods) Rules 1988 - Held that - It is seen that the imports though effected in 2002 were sought to be saddled with differential duty of 18, 50, 556/- by recourse to a market survey that was conducted on a date not in conformity with the prescription in Customs Valuation (Determination of Price of Imported Goods) Rules 1988. Accordingly the enhancement of value does not stand the test of law in consequence of which the impugned order is set aside - appeal allowed.

Summary

Issues:
Challenge to loading of value on imported goods based on market enquiry beyond prescribed period under Customs Valuation Rules.

Analysis:
The appeal pertains to M/s Aakash Stone Industries Ltd challenging the upholding of loading of value on imported 'polished small size cutter marble slabs' by US $ 2 per square meter instead of the declared value of US $ 11 per square meter. The loading of value was based on a market enquiry conducted beyond the prescribed period of six months under rule 7 of the Customs Valuation Rules. The impugned order confirmed the revision of value under rule 7(2) of the Customs Valuation Rules, 1988, but the learned counsel for the appellant argued that the market enquiry leading to the revision was carried out on a date exceeding the prescribed time limit.

The Learned Authorised Representative contended that the importers themselves had provided a market price higher than the revised price determined through the market enquiry. The imports in question were made in 2002, and a differential duty of &8377; 18,50,556/- was imposed based on a market survey conducted after the prescribed period under the Customs Valuation Rules. The Tribunal noted that the enhancement of value did not comply with the legal requirements, as the market survey was conducted on a date not in conformity with the rules. Consequently, the impugned order upholding the loading of value was set aside, and the appeal by M/s Aakash Stone Industries Ltd was allowed.

The judgment was pronounced in court on 30/07/2018 by Shri C J Mathew, Member (Technical), of the Appellate Tribunal CESTAT Mumbai. The decision highlights the importance of adhering to the prescribed procedures and timelines under the Customs Valuation Rules while determining the value of imported goods based on market enquiries.