9911796707
TMI Blog2024 (6) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... rendered a finding on the plea that disregard of procedure has jeopardized the survival of the computed value. There are no hesitation in holding that re-determination of assessable value has been undertaken in breach of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and has proceeded whimsically after rejection of declared value as transaction value. There has been no effort to ascertain availability of transaction value of identical goods or similar goods contemporaneously imported. It is worth noting that the appellants, too, had failed to adduce evidence of these and, thus, disabuse the presumption that such imports had not taken place. The resort to computed value under rule 8 of the said rules is entirely at variance with the Interpretative Notes to the said Rules. It is only appropriate that the disputes are restored to the original authorities for subjecting the respective show cause notices to a proper disposal in accordance with the framework stipulated in Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - appeals are allowed by way of remand. - HON BLE MR C J MATHEW , MEMBER ( TECHNICAL ) And HON BLE MR AJAY SHARMA , ME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferential duty of ₹ 1,20,64,285/- under section 28 of Customs Act, 1962, along with interest thereon under section 28AB of Customs Act, 1962, and proposing confiscation of the said goods under section 111 (m) of Customs Act, 1962 with attendant imposition of penalty under section 112, section 114A and section 114AA of Customs Act, 1962. 3. The Commissioner of Customs adjudicated the notice issued to M/s Damian International confirming re-determination of assessable value as well as recovery of duties, along with interest, and imposed penalty of like amount on the proprietor of M/s Damian International under section 114A of Customs Act, 1962. Adjudicating the notice issued to M/s Tisha International, the original authority confirmed all the proposals in the show cause notice which, on appeal before the first appellate authority, was modified to set aside the penalty imposed under section 112 of Customs Act, 1962 on the proprietor leading to the agitating of the other detriments in this appeal before us. 4. According to the Learned Counsel for the appellant, the adjudicating authority, and the first appellate authority, respectively had erred in affirming the proposal for rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en placed on the decision of the Tribunal in Rajesh Gandhi v. Commissioner of Customs (Import), Mumbai [2019 (366) ELT 529 (Tri.-Mumbai)]. 5. On the other hand, Learned Authorized Representative submitted that rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 had been rightly invoked in circumstances of brass scrap being traded at prices much higher than finished articles impugned here. It was further submitted that the appellants had been directed by the proper officer concerned to produce specified documents which, if forthcoming, could have precluded recourse to rejection of declared value but those were not made available. It was pointed out that valid reasons had been offered for proceeding directly to rule 8 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. 6. The limited issue in this appeal is conformity of findings on valuation in the impugned orders with Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. We take note that the appellants had been placed on notice by the respective adjudicating authorities of reasons to surmise undervaluation from the substantial gap between the tariff value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 by reference to the domestic market despite the requirement of such computation to be arrived at as 8. . the sum of:- (a) the cost or value of materials and fabrication or other processing employed in producing the imported goods; (b) an amount for profit and general expenses equal to that usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to India; (c) the cost or value of all other expenses under sub-rule (2) of rule 10. therein. 8. It would appear that the lower authorities had not considered the specificity of elements making up computed value with no pretension to eliciting of such necessary information. Needless to say rule 8 of the said rules is subject to rule 3 of the said rules and, therefore, any substituted value should also not be in dissonance with the conceptual framework of transaction value set out in section 14 of Customs Act, 1962. The computed value does not inspire confidence of being unimpeachable on that count either. The lower authorities had failed to guided by the rigour of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be noted in this context that the amount for profit and general expenses has to be taken as a whole. It follows that if, in any particular case, producer's profit figure is low and his general expenses are high, the producer's profit and general expenses taken together may nevertheless be consistent with that usually reflected in sales of goods of the same class or kind. Such a situation might occur, for example, if a product were being launched in India and the producer accepted a nil or low profit to offset high general expenses associated with the launch. Where the producer can demonstrate a low profit on his sales of the imported goods because of particular commercial circumstances, his actual profit figures should be taken into account provided that he has valid commercial reasons to justify them and his pricing policy reflects usual pricing policies in the branch of industry concerned. Such a situation might occur for example, where producers have been forced to lower prices temporarily because of an unforeseeable drop in demand, or where they sell goods to complement a range of goods being produced in India and accept a low profit to maintain competitivity. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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