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TMI Blog2025 (3) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... er has reason to doubt the truth or accuracy of the value declared for the imported goods, a two-step verification and examination exercise is required to be carried out. It is found that the Original Authority has not complied with the two-step verification and examination exercise, as stated by the Hon'ble Supreme Court. Revenue has not followed the procedure under sub-rule (2) of Rule 12 of CVR, 2007. This was all the more necessary when the proper officer only relied upon a value declared in a statement to arrive at the transaction value. The appellants request for cross-examination of certain witnesses was also denied. The averments made by the appellant in this case show that there has been a challenge to procedural fairness. Rule 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chemicals P. Ltd. (1 consignment). The appellants declared the value at Rs.45/- per kg in respect of bill of entry No. 4048795 dated 12.7.2011 and based on the declared value, the actual rate of residue wax was USD 868 per MT (CIF). The account statements pertaining to the imports made by M/s. Abhisek India from the suppliers showed that details such as invoice number, date of document 'retired' from bank, amount shipped details like material, quantity, unit price and total amount, EURO amount, rate, date invoiced etc. It appeared that the goods covered under Invoice No. A2032 were admittedly cleared vide Bill of Entry No. 4048795 dated 12.7.2011 by the appellants. On comparison of the declared value with the value found in the accounts sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry No. 453879 dated 6.2.2009 and No. 441993 dated 29.7.2008 respectively. The appellants in their statement admitted that the actual price of slack wax and residue wax were USD 700/MT/CF and USD 535/CF/MT respectively during 2008 and USD 735/MT/CF and USD 535/MT/CF respectively during 2009. It appears that the appellants have intentionally suppressed the actual value from customs and thereby evaded payment of customs duty. In all the cases, the value has been misdeclared with substitution of actual invoice with fake / fabricated invoices. After due process of law, the Ld. Adjudicating Authority rejected the declared value of the appellants and redetermined the value and demanded the differential duty and imposed penalty on the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r submissions without discussion. He stated that considering the gross violations of natural justice the impugned order may be set aside. 3.2 The Ld. AR has on behalf of revenue taken us through the impugned order and reiterated the points given therein. 4. We have gone through the appeal and have heard the rival parties. We find that the issue relates to the alleged undervaluation of imported goods. The Hon'ble Supreme Court in Century Metal Recycling Pvt. Ltd. v. Union of India [2019 (367) E.L.T. 3 (S.C.)], has examined the whole procedure of determining the transaction value of goods, the transaction value of which is doubtful and requires to be redetermined. It held that where the proper officer has reason to doubt the truth or accur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marise the provisions of rule 12 of the Valuation Rules as follows: "15. The requirements of Rule 12, therefore, can be summarised as under : (a) The proper officer should have reasonable doubt as to the transactional value on account of truth or accuracy of the value declared in relation to the imported goods. (b) Proper officer must ask the importer of such goods further information which may include documents or evidence; (c) On receiving such information or in the absence of response from the importer, the proper officer has to apply his mind and decide whether or not reasonable doubt as to the truth or accuracy of the value so declared persists. (d) When the proper officer does not have reasonable doubt, the goods are cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to be done under Rule 9 of the CVR 2007, as per the value declared in the statement taken from Shri Noor Mohamed. Such a procedure is not contemplated under Rule 9 of CVR, 2007. In fact, the Rule cautions against adopting arbitrary or fictitious values. The said Rule is reproduced below. 9. Residual method.- (1) Subject to the provisions of rule 3, where the value of imported goods cannot be determined under the provisions of any of the preceding rules, the value shall be determined using reasonable means consistent with the principles and general provisions of these rules and on the basis of data available in India; Provided that the value so determined shall not exceed the price at which such or like goods are ordinarily sold or offe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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