2001 (1) TMI 419 - AT - Customs

Summary

Issues: Valuation of imported goods for assessment purposes

Analysis:
The case involved the import of 8000 pairs of M-locks with a declared invoice price of US $ 0.525 per pair. Customs authorities suspected undervaluation and conducted a market enquiry, obtaining information from the Directorate of Intelligence. The Assistant Collector adjudicated the matter based on a personal hearing, determining the value at US $ 0.80 per piece due to the goods being unbranded and of inferior quality. The Commissioner of Customs (Appeals) later directed assessment based on the declared value, leading to the Revenue's appeal.

The Tribunal examined the grounds of appeal, where the Revenue argued for valuation based on similar goods from market enquiries, claiming a 30% allowance for the inferior quality of the imported goods. However, it was noted that no technical opinion was sought to assess the quality difference. The Commissioner (Appeals) found no contemporaneous importation of the comparison goods, deeming the valuation under Section 14(1) of the Customs Act as illegal. The Tribunal agreed, stating that Section 14(1) requires valuation based on goods available for sale at the time and place of importation, which was not met in this case. As the essential condition for valuation was not satisfied, the Commissioner's decision to accept the declared price for assessment was upheld, and the Revenue's appeal was rejected.