1990 (5) TMI 135 - AT - Customs

Summary

Issues: Valuation of imported goods under Section 14 of the Customs Act, 1962

Comprehensive Analysis:

1. Issue 1: Valuation of Goods
The case involves a dispute regarding the valuation of imported dry figs under Section 14 of the Customs Act, 1962. The appellants imported 100 packages of Figs Dry and declared a value of 1 US$ per kg in the Bill of Entry. However, a similar consignment was cleared the day before at a rate of 1.50 US$ per kg. The Assistant Collector rejected the invoice value and assessed the value at 1.50 US$ per kg, based on the provisions of Section 14, which require the value to be the price at which goods are sold in international trade between disinterested parties. The Collector (Appeals) upheld this decision, emphasizing that the value shown in the invoice is not the sole guide for assessment.

2. Issue 2: Appeal Against Collector's Decision
The appellants appealed the Collector (Appeals) decision, arguing that the quality of the figs imported on different dates could vary, and no expert opinion was sought regarding quality. They contended that the price should be determined under Section 14(b) and Rule 4(a)(iii) of the Valuation Rules. The appellants also cited a Tribunal judgment in a similar case to support their position.

3. Issue 3: Tribunal's Decision
The Tribunal analyzed the provisions of Section 14 of the Customs Act, emphasizing that the value of goods for assessment should be based on the price at which similar goods are ordinarily sold in international trade. The Tribunal noted that the department had not provided evidence of other contemporary imports to justify adopting prices from publications over the invoice value. The Tribunal highlighted that Section 14(a) requires sales to be in the course of international trade, and without establishing a legal nexus, prices from financial journals cannot be considered indicative of international trade prices. The Tribunal dismissed the appeal, affirming that the Collector's decision to assess the value at 1.50 US$ per kg was correct, as comparable prices for contemporary goods were available.

In conclusion, the Tribunal's decision reaffirmed the application of Section 14 of the Customs Act for determining the assessable value of imported goods based on prices in international trade. The judgment underscores the importance of considering comparable prices and legal requirements for valuation under the Customs Act, ultimately dismissing the appeal against the Collector's decision.