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TMI Blog2014 (2) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... ings, the AO has to examine the probative value of the documents on which reliance is placed by the department in support of its allegation of undervaluation. Once the department discharges the burden of proof to the above extent by producing evidence of contemporaneous imports at higher price, the onus shifts to the importer to establish that the invoice relied on by him is valid. Therefore, the charge of under-invoicing has to be supported by evidence of prices of contemporaneous imports of like goods. Section 14(1) speaks of “deemed value”. Therefore, invoice price can be disputed. However, it is for the department to prove that the invoice price is incorrect. Revenue has failed to prove otherwise apart from import of spare parts the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value declared by the appellant for imported goods were rejected and SVC found that loading of 10 percent on the transaction value declared by the appellant adjudicating authority has held that the invoice value declared by the appellant is enhanced by further 10 per cent accordingly, impugned order was passed. The said order was challenged by the appellant before the Commissioner (Appeals) who hold that the appellant has failed to produce any positive evidence that the transaction value were not influenced being related person and confirmed the adjudication order. Aggrieved by the said order the appellant is before us. 4. Shri Prakash Shah, learned Counsel appeared for the appellant and submitted that the appellant is the manufacturer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be set aside and their appeal be allowed. 5. On the other hand the learned A.R. appearing for the Revenue strongly opposes the contention of the learned Advocate and submitted that for the same parts during the same period the value of the contemporaneous imports is available. Therefore, the adjudication order is justifying and instead of loading the value to 300% of the value declared the SVC has passed the order for loading of only 10% on the transaction value. Therefore the impugned order is to be upheld. 6. Heard both sides and considered the submissions in detail. 7. The short issue is to be decided by us is that whether there can be two prices for import of the same goods for manufacture or as spare parts. The same has been c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve seen that apart from the price of the spare parts on higher side, the department is not able to produce any evidence on record to support that the transaction value is not influenced as related person. In the case of Commissioner of Customs v. South India Television (P) Ltd. - 2007 (214) E.L.T. 3 (S.C.), the Hon ble Supreme Court has observed as is given below :- The value is deemed to be the price at which such goods are ordinarily sold or offered for sale, for delivery at the time and place of importation in the course of international trade where the seller and buyer have no interest in the business of each other and the price is the sole consideration for the sale or for offer for sale. Therefore, what has to be seen by the Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declaration was procured. We may clarify that strict rules of evidence do not apply to adjudication proceedings. They apply strictly to the courts proceedings. However, even in adjudication proceedings, the AO has to examine the probative value of the documents on which reliance is placed by the department in support of its allegation of undervaluation. Once the department discharges the burden of proof to the above extent by producing evidence of contemporaneous imports at higher price, the onus shifts to the importer to establish that the invoice relied on by him is valid. Therefore, the charge of under-invoicing has to be supported by evidence of prices of contemporaneous imports of like goods. Section 14(1) speaks of deemed value . Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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