2024 (6) TMI 401 - AT - Customs

Valuation of imported goods - Used Reach Truck with 2 Additional Batteries and 1 Charger BT RRE 77 No. 737271 year 2005 Mast TXHI 11,500MM and some other new Reach Truck Parts - rejection of transaction value - enhancemnat of value value based on Chartered Engineer Certificate - no evidence to doubt the value declared by the appellant - HELD THAT - The goods imported are used and old goods. It is impossible to assess the value of such old goods without being supported by a load port Chartered Engineer Certificate. As per Clause (c) of Board Circular referred above, old and used goods can be subject to examination of an approved Chartered Engineer in case the goods imported is not accompanied by load port Chartered Engineer Certificate. For these reasons, there are no error in rejecting the transaction value. The value has been enhanced on the basis of the Chartered Engineer Certificate and the CE has considered depreciation also. Taking note of the facts and also after perusal of the order passed by the Original Authority, there are no grounds to interfere with the enhancement of the transaction value declared by the appellant. The same has been enhanced on the basis of the certificate issued by the Chartered Engineer which is also proper. The decisions relied by the Ld. Counsel for appellant do not apply to the facts as the appellant has imported the goods without load port Chartered Engineering Certificate. The Tribunal in the case of SWARNA HEATING CONTROL CO. VERSUS COMMISSIONER OF CUSTOMS (IMPORT) CHENNAI 2018 (4) TMI 1253 - CESTAT CHENNAI in similar set of facts rejected the appeal filed by the importer. The impugned order does not call of interference - Appeal dismissed.

Summary

Issues:
The issues involved in the judgment are the rejection of transaction value for imported goods, the requirement of load port Chartered Engineer Certificate, and the validity of enhancing the value based on Chartered Engineer Certificate.

Rejection of Transaction Value:
The appellant imported used goods without furnishing a load port Chartered Engineer Certificate. The Department doubted the declared value of GBP 7200 (CIF) and gave the option for examination by an approved Chartered Engineer. The value was subsequently enhanced to GBP 14,000 (CIF) u/s Rule 9 of CVR, 2007. The appellant contended that there was no valid reason to reject the transaction value, citing Customs Act, 1962, and Board Circular No. 04/2008. The appellant argued that without sufficient evidence, the transaction value should not be rejected. The appellant relied on precedents such as Divine International and Sree Rajendra Mills Ltd. to support their case.

Requirement of Load Port Chartered Engineer Certificate:
The Department argued that the appellant failed to provide the load port Chartered Engineer Certificate, which led to doubts regarding the declared value. The Department emphasized that the Chartered Engineer's assessment, which considered the used condition and depreciation of the goods, justified the value enhancement to GBP 14,000. The Department referred to a previous case, Swarna Heating and Control Company, where a similar appeal was dismissed due to the absence of the load port Chartered Engineer Certificate.

Validity of Enhancing Value based on Chartered Engineer Certificate:
The Tribunal upheld the value enhancement based on the Chartered Engineer Certificate, stating that it was necessary for assessing the value of old and used goods. The Tribunal found no error in rejecting the transaction value and supported the decision to enhance the value as per the certificate issued by the Chartered Engineer. The Tribunal distinguished the appellant's case from previous decisions cited by the appellant, as the goods were imported without the required load port Chartered Engineer Certificate. Ultimately, the appeal was dismissed for lacking merit based on the findings and precedents presented.