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2020 (7) TMI 92 - AT - CustomsValuation of imported goods - LED TV of different models and empty pendent box - enhancement of value of goods based on NIDB data - HELD THAT - We are convinced with the order passed by the Ld.Commissioner, merely on the basis of NIDB Data without following the provisions of Customs Act and Valuation Rules. In various decisions, it has been held that the NIDB Data cannot be substituted for Customs Valuation Rules. In case of CENTURY METAL RECYCLING PVT. LTD. AND ANOTHER VERSUS UNION OF INDIA AND OTHERS 2019 (5) TMI 1152 - SUPREME COURT , the Hon ble Supreme Court has given a categorical decision that the valuation has to be ascertained only by complying with the provisions of Section 14 of the Customs Act, 1962 read with Customs Valuation Rules, 2007. As the Ld. Adjudicating Authority has completely ignored the provisions of Customs Act and Valuation Rules, we are of the view that the impugned order is not sustainable. Appeal dismissed - decided against Revenue.
Issues:
1. Confiscation of goods and imposition of penalty under Customs Act, 1962. 2. Proper appreciation of valuation for re-assessment of imported goods under Customs Act, 1962. Issue 1: Confiscation of goods and imposition of penalty under Customs Act, 1962: The case involved appeals arising from an Order-in-Original that confiscated LED TVs imported under a specific Bill of Entry, imposing a redemption fine and penalty under Sections 111(m) and 112(a) of the Customs Act, 1962. The appellant contested the confiscation and penalties, while the Department challenged the redemption fine and penalty amounts. Both parties were dissatisfied with the valuation adopted for re-assessment of the imported goods under Section 14 of the Customs Act, 1962, and the Customs Valuation Rules, 2007. The appellant-importer declared the value of the goods in the Bill of Entry, which was scrutinized by the Special Investigation Branch (SIB) due to concerns about the declared price. The National Import Database (NIDB) revealed higher values for similar goods at other ports, prompting the Department to enhance the value based on this data without following the proper valuation procedures. The appellant argued that the NIDB data cannot replace the Customs Act and Valuation Rules for determining the value of imported goods, citing relevant legal precedents. The Departmental Representative contended that the impugned order did not adhere to the statutory provisions, necessitating its reversal. The Tribunal, after considering the submissions and case records, agreed with the appellant's position. It held that the valuation of goods must comply with Section 14 of the Customs Act, 1962, and the Customs Valuation Rules, as established by legal precedents, including a Supreme Court decision. Consequently, the Tribunal set aside the impugned order, allowing the appeal of the appellant and dismissing the Department's appeal. Issue 2: Proper appreciation of valuation for re-assessment of imported goods under Customs Act, 1962: The Ld. Commissioner's order enhancing the value of the imported goods solely based on NIDB data, without following the provisions of the Customs Act and Valuation Rules, was found to be unsustainable by the Tribunal. The Tribunal concurred with the appellant's argument that NIDB data cannot substitute the prescribed valuation methods. Legal precedents cited by the appellant's consultant further supported the position that proper valuation must adhere to the statutory framework. The Tribunal's decision to set aside the impugned order was based on the failure to comply with the established valuation procedures, emphasizing the necessity of following the Customs Act and Valuation Rules for determining the value of imported goods. The Tribunal's ruling highlighted the importance of adhering to statutory provisions and legal precedents in valuation matters under the Customs Act, 1962. By upholding the appellant's appeal and dismissing the Department's appeal, the Tribunal reinforced the significance of following the prescribed valuation rules and procedures for assessing imported goods, ensuring compliance with the law and established principles. This comprehensive analysis of the legal judgment provides a detailed overview of the issues involved, the arguments presented by the parties, and the Tribunal's decision based on statutory provisions and legal precedents.
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