2012 (11) TMI 694 - AT - Customs

Clearance of unbranded carbide dies declaring the value based upon the invoices raised by the supplier, which was based on contract price - assessing authority did not agree with the declared value and enhanced the same Held that - Merely because the importer has cleared. The goods at enhanced value to save the demurrage charges or otherwise, by itself, does not mean that the importer is consenting to enhance the value. It is right of the importer to contest the enhancement and fact of clearance of goods, cannot preclude the importer from exercising the right of appeal - Assessing authority has not passed a speaking order giving reasons for rejection of the declared price, he set aside the assessment order - matter remanded to the original adjudicating authority

Summary

Issues:
Challenge to assessment order based on declared value, Requirement of speaking order by assessing authority, Validity of value enhancement by Revenue, Right of importer to contest value enhancement, Remand of matter for deciding assessable value, Principles of natural justice.

Analysis:
The case involved an appeal by the Revenue against an order passed by the Commissioner (Appeals) regarding the assessment of unbranded carbide dies imported by the respondents. The assessing authority had enhanced the declared value based on the supplier's invoices, leading to a dispute. The Commissioner (Appeals) set aside the assessment order as the assessing authority did not provide reasons for rejecting the declared price and directed a speaking order to be passed within 15 days.

The Revenue challenged this decision citing Circular No. 91/2003-Cus., which allowed value enhancement with importer's consent without the need for speaking orders. However, the Tribunal disagreed with the Revenue's contention, emphasizing that the circular required the proper officer to provide in writing the grounds for enhancing value and grant a reasonable opportunity to the importer before a final decision. The Tribunal clarified that the importer's clearance of goods at an enhanced value did not imply consent to the enhancement, preserving the importer's right to contest and appeal the decision.

The Tribunal upheld the Commissioner (Appeals) order remanding the matter to the original adjudicating authority for determining the assessable value of the imported goods in line with principles of natural justice. It was emphasized that the importer's clearance of goods at an enhanced value did not waive their right to challenge the assessment. Therefore, the Tribunal found no merit in the Revenue's appeal and directed the original adjudicating authority to proceed as per the remand order.

In conclusion, the stay petition and appeal were disposed of in favor of the respondents, affirming their right to contest the enhanced value assessment and ensuring a fair determination of the assessable value in compliance with natural justice principles.