2000 (12) TMI 168 - AT - Customs

Summary

Issues:
1. Assessment of goods based on contracted price
2. Search conducted by D.R.I. officers after two years
3. Show Cause Notice proposing enhancement of assessable value
4. Arguments presented by learned Advocate for the appellants
5. Justification for enhancing assessable value
6. Entitlement to refund of duty paid during investigations

Analysis:

1. The appellants imported BOPP Film for Adhesive Tape at a contracted price of US$ 1.30 per Kg. The assessable value was determined based on this price, and the duty was paid accordingly.

2. D.R.I. Officers conducted a search at the appellants' premises after two years, where no incriminating documents related to the imports were found. The officers detained other goods valued at Rs. 36.00 lakh, which were later released.

3. A Show Cause Notice was issued proposing to enhance the assessable value from US$ 1.30 to US$ 2.07 per Kg. The notice relied on instances of other importers and resulted in an Order demanding a differential duty and imposing a penalty.

4. The learned Advocate argued that there was no evidence to discard the transaction value. He highlighted discrepancies in the instances relied upon by Customs Authorities and emphasized that the appellants had already paid the disputed duty during the investigation.

5. The Tribunal found that the evidences used to enhance the assessable value were not legally sound. It emphasized that the burden of proving under-valuation lies with the Revenue, requiring affirmative evidence. The Tribunal held that the enhancement based on quotations was impermissible, citing relevant case law.

6. Agreeing with the Advocate's submissions, the Tribunal ruled in favor of the appellants. It concluded that there was no justification for enhancing the assessable value and ordered the refund of duty paid during investigations. The appeal was allowed, setting aside the impugned Order.

This detailed analysis of the judgment highlights the contractual basis of assessment, the search conducted by D.R.I. officers, the issuance of a Show Cause Notice for enhancement of assessable value, the arguments presented by the Advocate, the justification for enhancing the value, and the final decision granting a refund of the duty paid during investigations.