2014 (1) TMI 64 - AT - Customs

Valuation of goods - Enhancement in valuation - Commissioner set aside enhancement - Held that - The assessed Bill of Entry having been appealed against by the importer is itself indicative of the fact that the enhanced value does not stand accepted by them. The importers cannot be precluded from challenging the assessed Bill of Entry on the sole ground that they have cleared the goods on the enhanced value, as rightly held by Commissioner (Appeals) - Decided against Revenue.

Summary

Issues:
1. Whether the enhancement of value on the assessed Bill of Entry was justified.
2. Whether the importer's payment of duty without protest and voluntary clearance of goods precludes them from challenging the assessed Bill of Entry.

Issue 1:
The Commissioner (Appeals) set aside the enhancement of value on the assessed Bill of Entry, stating that the assessing authority did not provide reasons for rejecting the transaction value or for the enhancement. The Commissioner relied on previous decisions and held that the enhancement was not justified. It was noted that the importer's clearance of goods at the enhanced value due to urgency does not prevent them from appealing. The Tribunal's decisions in various cases were referenced to support this position.

Issue 2:
The Revenue contended that the importer's payment of duty without protest and voluntary clearance of goods meant they had accepted the value enhancement. However, the Tribunal found no merit in this argument. The fact that the importer appealed against the assessed Bill of Entry indicated that they did not accept the enhanced value. The Tribunal held that importers should not be prevented from challenging the assessed Bill of Entry simply because they cleared the goods at the enhanced value. The impugned order of the appellate authority was deemed to have no infirmity, and the appeal filed by the Revenue was rejected.

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