2024 (1) TMI 1088 - AT - Customs

Re-valuation of imported goods - re-determination/enhancement of value of both the Infrared Thermometer as well as Fingertip Pulse Oximeter Blue Colour in terms of Rule 5 of the Customs Valuation Rules, 2007 - rejection of declared value - HELD THAT - The principles of natural justice have not been followed by the first appellate authority insofar as the Infrared Thermometers are concerned, instances of imports relied upon have not been furnished to the appellant, but the same have been used against the appellant. There is no denial by the Revenue on the above facts. Hence, it appears that at least insofar as valuation of the thermometer in question is concerned, the re-determination of the value is not proper. The contemporaneous imports relied upon by the first appellate authority having not been put across for rebuttal, the impugned order suffers from serious legal infirmity, being violative of the principles of natural justice. The first appellate authority has undoubtedly proceeded beyond the scope of the appellate jurisdiction as prescribed under the statute and therefore, the impugned order to this extent cannot sustain. Insofar as the enhancement of value of Fingertip Pulse Oximeter is concerned, no specific arguments were advanced - the appeal insofar as the enhancement of value of the oximeter is concerned, is dismissed. The appeal is partly allowed and partly dismissed.

Summary

Issues involved:
The issues involved in the judgment are the re-valuation of imported goods, specifically "Infrared Thermometer" and "Fingertip Pulse Oximeter Blue Colour," based on the Customs Valuation Rules, 2007. The main question is whether the Revenue is justified in re-valuing the goods in question.

Infrared Thermometer:
The importer self-assessed the goods under CTH 9025 1910 but faced challenges due to an alert circular on excessive undervaluation. The original authority rejected the self-assessment, leading to an appeal where the first appellate authority set aside the decision for re-adjudication. The original authority re-determined the value, which was further modified by the first appellate authority based on contemporaneous imports. The importer argued that the introduction of these imports without providing an opportunity for rebuttal violated natural justice. The Tribunal found that the re-determination without allowing rebuttal was improper and the order was violative of natural justice.

Fingertip Pulse Oximeter Blue Colour:
The re-valuation of the Fingertip Pulse Oximeter was not specifically challenged during the appeal. The Tribunal noted that no specific arguments were presented questioning the enhancement of the transaction value for the oximeter. As a result, the appeal concerning the enhancement of the oximeter's value was dismissed.

Conclusion:
The Tribunal partly allowed the appeal concerning the Infrared Thermometer due to the violation of natural justice in re-valuing the goods without allowing for rebuttal. However, the appeal regarding the enhancement of the Fingertip Pulse Oximeter's value was dismissed. The judgment was pronounced in the open court on 23.01.2024.