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TMI Blog2025 (3) TMI 1323X X X X Extracts X X X X X X X X Extracts X X X X ..... statute enacted under the authority of the Constitution to levy impost, is, first and foremost, clothed with that objective. A statute must, necessarily, be read as a harmonious construct in pursuit of that objective and customs law, intended to enable assessment of tax leviable by law, comprises attendant provisions and machinery provisions as its elements: assessment of goods intended to be cleared for home consumption to duty is founded on provisioning for rate of duty and for valuation which are supplemented with empowerment to exempt duties, to refund duties and to recover duties. The other elements are intended as procedures for ensuring that all goods, imported or exported, are charged to duty as prescribed through controls over conveyances and goods. Selective resort to some provision, laterally referring to rate or value and only contextually, without appreciation of the construct of the statute and the significance of the provision in the construct - either from lack of knowledge, which is not condonable, or with deliberate intent, which is unforgivable - manifests as perverse application of law. 2. M/s Jayant Impex, with intent of exporting 'stainless steel scrap' value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... home consumption' as set out in section 2 of Customs Act, 1962 rendering all such, except for goods intended for transit or transshipment, as covered under section 46 of Customs Act, 1962 owing to which re-assessment was empowered. It was also submitted that the inclusion of qualifier, such as 'for export', in the warehousing bill of entry could not erase ambit of section 46 of Customs Act, 1962. 5. Our prefacing of the disposal of this dispute with the observations of Hon'ble Supreme Court, albeit and in unconnected matter, was intended to underline the responsibility that sits upon adjudicating/appellate authorities: to be conscious of law and intent of law. Reason is not a consummation to be found in the sterility of a vacuum; reason adjudges the facts established by applying the law known to arrive at conclusion. Such law does not subsist in isolation, or as 'silos', within a statute. As far as the present proceedings are concerned, we observe that, blindsided by the imperative of chapter XIV of Customs Act, 1962, both the lower authorities appeared not to have given any thought to the essence of 'assessment' in the context of procedural prescription for deferment of levy in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manner of determination of value in respect of goods when there is no sale, or the buyer and the seller are related, or price is not the sole consideration for the sale or in any other case; (iii) the manner of acceptance or rejection of value declared by the importer or exporter, as the case may be, where the proper officer has reason to doubt the truth or accuracy of such value, and determination of value for the purposes of this section: (iii) the additional obligations of the importer in respect of any class of imported goods and the checks to be exercised, including the circumstances and manner of exercising thereof as the Board may specify, where, the Board has reason to believe that the value of such goods may not be declared, truthfully or accurately, having regard to the trend of declared value of such goods or any other relevant criteria] Provided also that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under section 46, or a shipping bill of export, as the case may be, is presented under section 50. Further, in the matter of rejection of the declared value, the actual value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ications that would indicate the prices of machines. Therefore, ascertaining the value of the second-hand machine imported by the appellants, when new, based on the certificate produced by the appellant itself and scaling down that price by giving depreciation does not appear to be an arbitrary method of ascertaining its value. 2, The appeal is dismissed. No order as to costs. From the above, I find the Original Authority has rightly re-determined the value of the goods as per the Certificate issued by the Customs Empanelled Chartered Engineer who appraised the Value of goods from 87,694.10/USD to 3,70,000/- USD.' has been recorded in the impugned order without considering the trigger for levy of duty on warehoused goods. 6. The first appellate authority has extracted section 14 of Customs Act, 1962, referred to rule 3(4) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and relied upon circular no. 4/2008-Cus dated 12th February 2008, on the practice to be adopted for valuation of 'second-hand machinery' imported into India, to affirm the finding on value in order of the original authority. This, effectively, is arrogating of authority to take recou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 as only the first of two 'stepping stones' by which the goods could legally be cleared for home consumption in terms of section 47 of Customs Act, 1962 and that assessment, either under section 17 of Customs Act, 1962 or under section 18 of Customs Act, 1962, must necessarily precede clearance for home consumption for the 'proper officer' to permit extinguishment of customs jurisdiction as envisaged in section 47 of Customs Act, 1962 Mere filing of bill of entry, under section 46 of Customs Act, 1962 and of essence to build in contingencies of 'relevant date' for rate of duty and tariff valuation, does not trigger empowerment of levy and assessment to duty in section 17 of Customs Act, 1962 which is the only stage for recourse to section 12 and section 14 of Customs Act, 1962 by 'proper officer' therein. These - the 'charging' and 'valuation' provisions - are stipulative and, like the definitional provision, to be referred to when embarking upon the machinery provisions in Customs Act, 1962. 10. Otherwise, in terms of section 46 of Customs Act, 1962 and chapter IX of Customs Act, 1962, the 'imported goods' are to be deposited, in a public warehouse or private warehouse, as the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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