1989 (6) TMI 185 - AT - Customs

Summary

Issues:
- Discrepancy in the valuation of imported goods based on 1983 price list.
- Burden of proof on the Department regarding under-valuation.
- Relevance of contemporaneous import evidence.
- Application of Section 14(1)(a) of the Customs Act, 1962 in determining deemed value.

Analysis:
The appeal concerns the valuation of imported goods by M/s. Automotive International, where the Department challenged the price shown in the invoice as incorrect compared to the 1983 price list. The Deputy Collector of Customs determined the value based on the 1983 list, imposing a penalty for under-valuation. The Collector of Customs (Appeals) reversed this decision, emphasizing the lack of contemporaneous imports at a higher price and the irrelevance of comparing 1984 imports to the 1983 price list under Section 14(1)(a) of the Customs Act, 1962. The Department appealed this decision.

The appellant argued that the 1983 price list was appropriate due to the absence of a 1984 list and the unlikelihood of the manufacturer selling above a 20% discount. They cited a tribunal decision to support this stance. Conversely, the respondent contended that the burden of proof for under-valuation lies with the Department, which failed to provide evidence of contemporaneous imports or follow proper valuation principles. They referenced a relevant case law to support their position.

The Tribunal analyzed the case, focusing on whether the Department proved under-valuation and if relying on the 1983 price list for deemed value was justified under Section 14(1)(a) of the Act. It emphasized the necessity of investigating contemporaneous imports to support under-valuation claims. The Tribunal held that the 1983 price list alone was insufficient to determine deemed value, as it did not fulfill the requirements of the Act. Consequently, the Collector of Customs (Appeals) decision was upheld, dismissing the Department's appeal.