Over-valuation of imported goods - application of rule 4 - value ...

Dispute Over Imported Goods Valuation: Rule 4 Applies, Rule 11 Inapplicable, Rule 9 Inconclusive Due to Limited Bank Data.

July 20, 2022

Case Laws     Customs     AT

Over-valuation of imported goods - application of rule 4 - value of identical goods - The contract between APML/APRL and EIF is for entire gamut of goods and services and hence cannot be compared with stand alone supply contract with Original Equipment Manufacturers. Invoices issued under two different sets of contractual obligation cannot be compared and relied upon to determine the value. Rule 11, therefore, has no application to the facts of the present case - the revenue has sought to invoke rule 9 by placing reliance on payments made by EIF to different vendors and/or manufacturers of the goods. The said evidence has been held to be not conclusive, as the revenue has considered the payment made through Axis Bank and Bank of Baroda only. - AT

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