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TMI Blog2014 (11) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... C/633/2010. 2. For the sake of brevity, we refer to the facts involved as available in Appeal No. C/633/2010. 3. After hearing both sides, we find that the appellant received an offer from M/s. Argain Company Ltd., Taiwan under the cover of their letter dated 25.5.2010, for the purchase of stock lot of LCD TVs. As the said offer is an important piece of evidence, we would like to reproduce the same: We are pleased to offer you a Stock Lot of LCD TVs of 3600 PCs of Samsung, Sony and Sanyo brand on as it is, where it is basis. As it is a stock lot the sizes will remain same but the models will be assorted. The prices are very reasonable and very competitive as it is a stock lot. The supply can be from any part of the world and the prices are CIF any part in India. The first shipment can be made within 7-10 days of confirming the order. The entire lot should be lifted by December, 2010. WE hope you will be confirming the order soon as as the offer is valid for 3 days only. 4. On receipt of said offer, the appellants vide their letter dated 27.5.2010, entered into correspondence with M/s. Argain Comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... healthy business relationship with you. Looking forward to doing business with you. 7. The foreign supplier concluded the sales contract dated 7.6.2010 with the following terms and conditions: Term and Conditions Prices are based on CIF Nhava Sheva Only. Shipment From Any port of the World to Moradabad Via Nhava Sheva. Prices are applicable for Minimum 3,600pcs Only. Total 3 Brands of assorted models. Quantity can be up/down (+/-) by 10-20%. All 3,600 pcs have to be picked up by not later than Dec. 2010 1st lot of approximate 500-600 PCS will be shipped out before end June 2010 After that 300-500 pcs or more per lot. As this is STOCK LOT, consignment ratio of all 3 brand in different sizes will depend upon availability of stock at the time of loading/shipment. Payment Terms: 30 days DA from the date of acceptance All the above terms are non-negotiable. If above (ALL) terms and conditions are acceptable to you, kindly sign this contract and fax us the same acceptance. You will be bound by the terms and conditions of this contract. 8. On conclusion of the contract, the appellant intimated the Revenue about the said sales contract on 15.6.2010, which letter was respond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant before Commissioner (Appeals) in Appeal No. C/632/2010. In respect of Bill of Entry dated 30.7.2010, show cause notice was issued proposing to enhance the value. The said notice culminated into order passed by the Additional Commissioner confirming the demands, confiscating the goods with an option to redeem the same on payment of redemption fine and imposing penalties. Said order of the Additional Commissioner was challenged before Commissioner (Appeals) in Appeal No. C/633/2010. 11. Commissioner (Appeals) vide two different orders-in -appeal rejected the appeals filed by the importer. Hence, the present two appeals. 12. We have heard both sides at length duly represented by Shri Krishan Kant, learned advocate for the appellant and Shri Govind Dixit, learned DR. Ongoing through the impugned order of Commissioner (Appeals), we find that the enhancement of the value of the goods is primarily done on the ground of mis-declaration in the Bills of Entry and consequently based upon the market inquiry, the Sony dealers inquiry and NIDB data. As regards the mis-declaration Commissioner has examined four documents i.e. offer of sale dated 25.5.2010, from M/s. Argan Company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 14 of the Customs Act, 1962 and has quoted that in terms of said section the transaction value of the goods was to be the assessable value, in the ordinary course of business. However, he has further proceeded to refer and rely relied upon provisions of Rule 3(2) of Customs Valuation Rules to substantiate his finding that where the said value is doubted by the customs, the transaction value can be rejected and the assessable value can be determined under the provisions of Customs Valuation Rules. Though the Commissioner (Appeals) is correct in his finding that if there is doubt about the correctness of the transaction value, Customs authorities were within their right to investigate the matter and based upon the evidence so collected, can proceed to decide the transaction value afresh. There can be no quarrel about this legal position. However, before going to the provisions of Customs Valuation Rules, transaction value has to be rejected as not accurate or wrong / incorrect assessable value based upon the evidence. Mere doubt, without any reason or rhyme cannot be made the basis for rejection of the transaction value, without any reasonable and justifiable evidence. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the Commissioner (Appeals) on the provisions of Explanation (1) (iii) (d and e) of Rule 3(2) of the Customs Valuation Rules is not proper. The said provisions of law are invokable only when the proper officer has some doubt on the truth or accuracy of the value based on certain reason which may include the mis--declaration of goods in parameters such as description, quality, quantity, country of origin, year of manufacture or production. As already observed by us, the goods being stock lot, it was neither possible nor practical for the importer to declare the country of origin or year of manufacture of each and every piece. This non possibility already stand intimated to the AC, even prior to the import of goods. Otherwise there is no mis-declaration in respect of description, quantity or brand of goods. 14. For the reasons referred above, we find no merits in the Revenues stand. Consequently the impugned orders are set aside and appeals allowed with consequential relief to the appellant. 15. As the Revenues appeal is only against reduction of the redemption fine and penalty, and inasmuch as we have held in favour of the assessee on merits, the said appeal of the Revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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