2005 (6) TMI 124 - AT - Customs

Summary

Issues:
1. Undervaluation of imported goods based on contemporaneous invoice.
2. Reliability of declared value supported by manufacturer's invoice.
3. Application of legal precedent in determining the declared value of imported goods.

Issue 1: Undervaluation of imported goods based on contemporaneous invoice
The case involved an appeal by the Revenue against a decision regarding the valuation of imported Synthetic Camphor Powder. The Department contended that the goods were undervalued based on a contemporaneous invoice showing a higher value than the one declared by the importer. The Department proposed to enhance the value of the goods and demand differential duty. However, the Commissioner of Customs dropped the proposal, stating that the declared value was supported by a manufacturer's invoice and there was no reason to doubt its genuineness.

Issue 2: Reliability of declared value supported by manufacturer's invoice
The Tribunal examined the case and found that the only ground for appeal was the contemporaneous invoice dated 7-1996. The importer's counsel relied on a previous Tribunal decision where the value declared by the importer was accepted based on the manufacturer's invoices produced. In this case, the declared value was based on a Hong Kong party's invoice initially, with the Chinese manufacturer's invoice produced later. The Commissioner determined that both invoices pertained to the imported goods, and there was no basis to question the declared value. The Tribunal upheld the Commissioner's decision, emphasizing the importance of the manufacturer's invoice as the best evidence of value.

Issue 3: Application of legal precedent in determining declared value
The Tribunal referenced the previous case law where the Tribunal accepted the declared value based on manufacturer's invoices. It was highlighted that in situations where the declared value is supported by invoices related to the imported goods, the Department cannot challenge the value solely based on a contemporaneous invoice without further investigation. Following the legal precedent and the Commissioner's decision, the Tribunal dismissed the appeal, affirming the importance of genuine documentation in determining the value of imported goods.

In conclusion, the Tribunal upheld the Commissioner's decision, emphasizing the significance of genuine documentation, specifically manufacturer's invoices, in determining the declared value of imported goods and highlighting the importance of legal precedent in such valuation disputes.