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TMI Blog2025 (2) TMI 429X X X X Extracts X X X X X X X X Extracts X X X X ..... oice price) is projected to be true and correct or the value was found to be substantially lower than the prevailing international market price. The Issue does not appear to be localised to India alone as the circular mentions that the Rule has been added to give effect to the decision taken by the Ministers of the Countries which are signatories to GATT, 1994. The Rule thus seeks to address the 'mischief of manipulated values declared by some importers by not correctly disclosing the transaction value based on documents which are in their exclusive possession'. In the present case, the market enquiry report has not been provided to the appellant showing the results of the survey and with a work sheet as to how the value was arrived at. This has effectively disadvantaged the appellant from giving a reply and violates the principles of natural justice. In Commissioner of Sales Tax, U.P. v. R.P. Dixit Saghidar [2000 (3) TMI 992 - SUPREME COURT], it was held that when principles of natural justice are stated to have been violated it is open to the appellate authority, in appropriate cases, to set aside the order and require the Assessing Officer to decide the cases de novo. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Imported Goods) Rules, 2007 (CVR 2007). He demanded differential duty along with interest and also imposed a penalty. In appeal, the Ld. Commissioner (Appeals) upheld the order. Hence this appeal. 3. The Ld. Counsel Shri N. Viswanathan appeared for the appellant and Ld. Authorized Representative Shri N. Sathyanarayana appeared for the respondent. 3.1 The Ld. Counsel for the appellant submitted that the goods in the consignment were as per the declaration, namely in terms of quantity weight and description. The appellant by his letter dated 13/12/2008 addressed to the Commissioner informed that the value declared by him was based on the overseas supplier's invoice and reflected the true transaction value for the goods besides. He also produced a few local invoices in support of his declaration. A search was conducted at the Delhi premises of the appellant with nothing incriminating being recovered. The lower authorities having not held the overseas supplier's invoice to be invalid ought not to have rejected the true and correct transaction value without bringing on record any admissible evidence. A copy of the so-called market enquiry said to have been conducted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the value of such imported goods cannot be determined under the provisions of sub-rule (1) Rule 4 (2) At the request of an importer, the proper officer, shall intimate the importer in writing, the grounds for doubting the truth or accuracy of the value declared in relation to goods imported by such importer and provide a reasonable opportunity of being heard, before taking a final decision under sub-rule (1)" 2. As you are aware, as per rule 4 of the Customs Valuation Rules, the transaction value, i.e. the price actually paid or payable for the goods when sold for export to India, as adjusted, in accordance with the provisions of rule 9, has to be accepted, except where situations as provided in Rule 4(2) and 4(3) exist. If done of these circumstances prevail, the rules do not permit the rejection of declared value, if such a value is supported by an invoice from the seller 3. Several instances have been brought to the notice of the Board, wherein the invoices produced in support of the declared values have been found to be manipulated but on the face of it the transaction value (le, the invoice price) is projected to be true and correct. In some cases even manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l market price. The Issue does not appear to be localised to India alone as the circular mentions that the Rule has been added to give effect to the decision taken by the Ministers of the Countries which are signatories to GATT, 1994. The Rule thus seeks to address the 'mischief of manipulated values declared by some importers by not correctly disclosing the transaction value based on documents which are in their exclusive possession'. 5. A three Judge bench of the hon'ble Supreme Court in Century Metal Recycling Pvt. Ltd. & another Vs Union of India & Ors. [CIVIL APPEAL NO. 5011 OF 2019, Dated: 17/05/2019 / [2019 (367) E.L.T. 3 (S.C.)], examined the provisions of Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and summarized the same as under: " 14. Rule 12, which as noticed above enjoys primacy and pivotal position, applies where the proper officer has reason to doubt the truth or accuracy of the value declared for the imported goods. It envisages a two-step verification and examination exercise. At the first instance, the proper officer must ask and call upon the importer to furnish further information including documents to justify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper officer can therefore reject the declared transactional value based on certain reasons to doubt the truth or accuracy of the declared value in which event the proper officer is entitled to make assessment as per Rules 4 to 9 of the 2007 Rules. What is meant by the expression grounds for doubting the truth or accuracy of the value declared has been explained and elucidated in clause (iii) of Explanation appended to Rule 12 which sets out some of the conditions when the reason to doubt exists. The instances mentioned in clauses (a) to (f) are not exhaustive but are inclusive for there could be other instances when the proper officer could reasonably doubt the accuracy or truth of the value declared." (emphasis added) 6. We find that while the proper officer may have been correct in not being satisfied and had reasonable doubt the truth or accuracy of the abnormally low value declared for the impugned goods in unit price and Retail Sale Price (RSP) for a dozen calculators instead of per piece basis, he has satisfied the first stage of redetermination of assessable value. The second stage involves determining the value by proceeding sequentially from rule 4 to 9 of CVR 2007. T ..... 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