2023 (12) TMI 691 - AT - Customs

Valuation of imported goods - used office furniture - rejection of declared value - enhancement of value - dispute is based on the Inspection Report of the Charted Engineer - HELD THAT - The Inspection Report filed by the Chartered Engineer which is placed on record is perused. They said Chartered Engineer has not disputed that the goods in question were in fact used goods. At paragraph 2.6 of his report, the said engineer is giving an estimated new equipment value at the YOM; other than this, the said engineer has not considered any other similar goods which were imported at about the same time/date. Admittedly, the imported goods were used goods/equipment and not new equipment, as observed in the Inspection Report. Hence, the Inspection Report does not inspire any confidence as regards the valuation is concerned and hence the reliance placed on the same is not the correct position. Hence, the lower authority has clearly erred in solely relying on the said inspection report, which is of no evidentiary value. The said report is ignored, and consequently, the re-valuation as well, which is solely based on the said report - impugned order set aside - appeal allowed.

Summary

Issues involved:
The dispute revolves around the determination of the value of imported 'used office furniture' based on an Inspection Report by a Chartered Engineer.

Summary:

1. Background:
The importer filed appeals against the Order-in-Appeal passed by the Commissioner of Customs (Appeals), Chennai, rejecting the declared value of the imported used furniture and determining an enhanced value.

2. Determination of Value:
The Chartered Engineer's Inspection Report considered new equipment value instead of the actual used goods' value. The lower authority relied solely on this report for re-valuation, leading to a discrepancy in the valuation process.

3. Adjudication:
Upon review, the Appellate Tribunal found that the Inspection Report lacked evidentiary value as it did not accurately assess the value of the used imported goods. The Tribunal set aside the impugned order and allowed the appeals, emphasizing the incorrect reliance on the flawed inspection report.

Conclusion:
The Tribunal concluded that the lower authority erred in determining the value of the used imported goods based on an unreliable Inspection Report and, therefore, decided in favor of the appellant, overturning the previous decision.