Case Law Details
Sunland Alloys Vs C.C. (CESTAT Ahmedabad)
The issue under consideration is whether the DGOV guidelines are over and above Customs Valuation Rules?
In the present case, the appellant imported Aluminium Scrap under various Bill of Entries and the price declared in the Bill of Entry is as per the invoice of the foreign supplier. The department did not accept the declared value and reassessed the Bill of Entry by enhancing the declared value. Against the reassessment of Bill of Entry appellant filed appeals before the Commissioner (Appeals). The Commissioner (Appeals) rejected appeals on the ground that the appellant has given a consent letter accepting the enhanced value of the Assessing Authority, therefore, the appellant is not an aggrieved party. Hence, appeals are not maintainable. Being aggrieved by the Orders-In-Appeal the appellant filed the appeal in the tribunal.
CESTAT states that, the Assessing Authority reassessed the Bill of Entries by enhancing the value not on the basis of any material evidence which show that the appellant have misdeclared the value even no Contemporaneous Import Data was relied upon. The sole reason for enhancement of the value is on the basis of DGOV Guideline. Therefore, the Adjudicating Authority has not followed the principle laid down under the Custom Valuation Rules and without application of mind straightway enhanced the value only on the basis of DGOV guildeline. CESTAT make it clear that DGOV guideline is not above the statute, the adjudicating authority has not followed the Customs Valuation Rules whereby, he was supposed to first reject the declared value and subsequently he was supposed to apply rules sequentially and only thereafter, the value can be enhanced that too on the basis of evidence.
Further, they states that even though the assessee gave consent letter but if the assessing authority has not followed the principle of valuation as laid down under the act and Custom Valuation Rules, the assessment will not sustain. Accordingly, the impugned orders are set aside and Appeal filed by assessee is allowed.
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