2022 (1) TMI 578 - SC - Customs

Valuation of imported goods - Rejection of transaction value - enhancement of transaction value of imported goods by 20% instead of 77% for the years 2013-14 to 2016-17 - re-determination of adjustment, in the transaction value on the basis of deductive value and computed value of the goods imported by the respondent-dealer - HELD THAT - The contentions remain untenable because the Tribunal has dealt with the matter in meticulous details and has pointed out substantial basis for its findings that the transaction value shown by the respondent and that of the ASD cannot be treated as comparable at commercial level and quantitative level; and has also pointed out that the promotion activity was undertaken only by the respondent for which, it was earning higher discount. The Tribunal has also found that the difference gradually decreased from the year 2014-15 and came at par in the year 2017-18. It is apparent that there had been want of application of mind on the part of the Deputy Commissioner to the material circumstances and the relevant factors; and the Tribunal has disapproved his order on relevant considerations and after examining the entire record. Moreover, when the matter essentially proceeds in its own facts and the view taken by the Tribunal does not appear to be an impermissible one, there are no reason to consider interference in appeal. Appeal dismissed.

Summary

Issues:
- Appeal under Section 130E(b) of the Customs Act, 1962 against the order of the Customs, Excise and Service Tax Appellate Tribunal, New Delhi.
- Determination of transaction value of imported goods by the Tribunal.
- Comparison of transaction value between the respondent and Authorized Stocking Distributors (ASD).
- Application of Customs Valuation Rules, 2007.
- Justification for enhancement of transaction value by the Tribunal.
- Re-determination of adjustment in transaction value based on deductive value and computed value.
- Compliance with Rule 3(3) of the Valuation Rules.
- Remand order to Deputy Commissioner, SVB for re-determination of adjustment.

Analysis:
- The appellant, Commissioner of Customs, sought to maintain an appeal under Section 130E(b) of the Customs Act against the Tribunal's order. The Tribunal had modified the enhancement of transaction value of imported goods by reducing it to 20% for the years 2013-14 to 2016-17, rejected the enhancement for 2017-18, and remanded the matter to re-determine adjustment based on deductive value and computed value of goods imported by the respondent-dealer.

- The appellant argued that the Tribunal's reduction of enhancement to 20% lacked basis and restricted authorities from taking a fresh view. However, the Tribunal meticulously analyzed the matter, finding that the transaction values were not comparable due to various factors like promotional activities, differences in imports, and costs incurred. The Tribunal highlighted that the appellant imported in bulk for resale, incurring additional costs, and that the difference in values decreased over the years.

- The Tribunal referred to Rule 3(3) of the Valuation Rules, emphasizing the need to consider deductive value for adjustment in transaction value. It criticized the Deputy Commissioner for not properly considering relevant factors and approved the remand for re-determination based on deductive value and computed value.

- Overall, the Tribunal's decision was found to be well-reasoned, considering the specific circumstances and relevant factors. The Supreme Court dismissed the appeal, concluding that there was no justification for interference as the Tribunal's view was permissible based on the facts presented.