2018 (10) TMI 565 - AT - Customs

Valuation of imported goods - rejection of declared value - Case of respondent is that Department could not provide any data on contemporaneous import of the said consignments of betel nuts at the time of filing bills of entry - Held that - As assessment in these cases have been done by rejecting the declared invoice prices on a notional value for which no evidence, whatsoever, had been provided to the importer either at the time of import and or at the time of finalisation of provisional assessment, the same is contrary to the Provisions of Section 14 of Customs Act, 1962 read with the Customs Valuation Rules, 1988. The Commissioner (Appeals) had therefore, rightly set aside the assessment orders and ordered that assessment of the imported goods under the various bills of entry, to be made at the declared price - Appeal dismissed - decided against Revenue.

Summary

Issues:
Assessment of imported consignments on a provisional basis under Customs Act, rejection of declared value, notional assessment, legal basis for value enhancement, lack of contemporaneous import data, compliance with Customs Valuation Rules.

Analysis:
The judgment deals with an appeal against the provisional assessment of imported consignments of Betel Nuts under the Customs Act. The lower Adjudicating Authority had provisionally assessed the bills of entry on a notional value, rejecting the declared value under Customs Valuation Rules. The importer challenged this assessment, arguing that the increase in declared value lacked a legal basis and was done without providing any contemporaneous import data. The Ld. Commissioner (Appeals) set aside the assessment orders, noting the absence of evidence supporting the notional value increase at the time of import or finalization of the assessment.

Upon review, the Tribunal found that the assessment based on rejecting declared invoice prices in favor of notional values without providing evidence to the importer was contrary to Section 14 of the Customs Act and Customs Valuation Rules. The Tribunal agreed with the Commissioner (Appeals) that the assessment should have been made at the declared price, as no legal basis or supporting data was provided for the notional assessment. Consequently, the Tribunal upheld the decision to set aside the assessment orders and rejected the appeal filed by the Revenue.

In conclusion, the Tribunal emphasized the importance of adhering to the Customs Act and Valuation Rules in assessing imported goods. The judgment underscores the necessity of providing legal basis and evidence for any deviations from declared values, highlighting the significance of contemporaneous import data in determining the appropriate assessment of customs duty. The decision serves as a reminder of the procedural requirements and legal standards that must be followed in customs valuation assessments to ensure fairness and compliance with the law.