2006 (7) TMI 237 - HC - Customs

Summary

Issues: Valuation of imported goods, reliance on evidence, appellate authority's decision

The judgment pertains to a case where the declared value of imported goods was disputed by the customs department. The petitioner, engaged in importing and printing photographs, imported machinery from Singapore, but the department valued the goods higher than the declared amount based on a fax message from the exporter. The appellate authority then reduced the value but imposed a penalty. The petitioner argued that the department erred in relying on the fax message instead of the Chartered Engineer's Certificate provided to establish the correct value. The appellate authority considered new evidence not presented before the original authority, leading to the filing of a writ petition.

The petitioner contended that the appellate authority should have accepted the Chartered Engineer's Certificate as the correct value reference, as it was the only evidence available besides the disputed fax message. The department's reliance on new material during the appeal was challenged, citing a legal precedent. The respondents defended the appellate authority's decision, claiming it correctly determined the price based on the relevant date and suggesting the petitioner should have pursued the appeal process instead of approaching the court under Article 226 of the Indian Constitution.

The judgment highlighted the rejection of the Chartered Engineer's Certificate by the department without providing a valid reason for doing so. The appellate authority's decision to fix the value based on new evidence presented during the appeal, without giving the petitioner an opportunity to respond, was criticized. The court set aside the impugned order, directing the department to reevaluate the goods' value based on available evidence and invoices presented, while confirming the rejection of the fax message as a valid valuation basis. The department was instructed to issue a new decision within three weeks, emphasizing fair consideration of all relevant materials without imposing costs on the petitioner.