2023 (6) TMI 710 - AT - Customs

Valuation of imported goods - mix lot of Polyester Knitted Fabrics - revision of assessable value by rejecting the declared assessable value - HELD THAT - It is noticed that identical issue has been decided by Tribunal in the case of SEDNA IMPEX INDIA P LTD, GARG IMPEX AND SOIR INTERNATIONAL VERSUS C.C. -MUNDRA 2023 (3) TMI 1080 - CESTAT AHMEDABAD , wherein Tribunal has observed that In the present case, the adjudicating authority enhanced the value as the declared value appears to be low compared to value available in NIDB data, otherwise, there is no material available. The Tribunal consistently observed that the declared value cannot be enhanced merely on the basis of NIDB data. It is seen that the aforesaid decision in the case of M/s. Sedna Impex India P. Ltd., covers the issue raised in instant dispute. Consequently following the decision in the case of M/s. Sedna Impex India P. Ltd, the appeal is allowed.

Summary

Issues Involved:
1. Valuation of Imported Goods
2. Eligibility for Exemption Notification No. 30/2004-CE

Summary:

1. Valuation of Imported Goods:
The primary issue in this case pertains to the valuation of imported mixed lot of Polyester Knitted Fabrics. The revenue sought to revise the assessable value by rejecting the declared value. The Tribunal referenced an identical issue in the case of M/s. Sedna Impex India P. Ltd., where it was observed that the transaction value declared by the importer should form the basis of assessment unless cogent reasons for rejection are provided as per the Customs Valuation Rules. The Tribunal highlighted that the Customs authorities must provide justifiable reasons for rejecting the transaction value and must follow the step-by-step methodology outlined in the Customs Valuation Rules for re-determination of assessable value. In this case, neither the adjudicating authority nor the Commissioner (Appeals) provided special circumstances warranting the rejection of the declared transaction value. The enhancement of value based solely on NIDB data was deemed insufficient without other independent evidence or proper examination of the goods' characteristics. The Tribunal concluded that the enhancement of value on the basis of NIDB data cannot be accepted.

2. Eligibility for Exemption Notification No. 30/2004-CE:
The second issue involved the eligibility for exemption from Countervailing Duty (CVD) under Notification No. 30/2004-CE. The Tribunal noted that this issue had already been decided in favor of the appellant in the case of M/s. Sedna Impex India Pvt. Ltd. It was clarified that the condition of non-availment of Cenvat Credit on inputs/capital goods need not be satisfied by the importer. The Tribunal referenced the Central Board of Excise and Customs Circular No. 1005/12/2015-CX and the Supreme Court's judgment in the case of SRF Ltd. v. Commissioner of Customs, Chennai, which supported the appellant's eligibility for exemption. The Tribunal reiterated that the benefit of the exemption notification can be claimed at any stage and should be extended to the assessee even after the clearance of goods. Consequently, the Tribunal set aside the impugned orders and allowed the appeals with consequential relief to the appellants.

Conclusion:
Following the decision in the case of M/s. Sedna Impex India P. Ltd., the Tribunal allowed the appeal, setting aside the impugned orders and granting consequential relief to the appellants.