Case Law Details
Kunj Bihari Textiles Vs C.C.-Mundra (CESTAT Ahmedabad)
CESTAT Ahmedabad held that the transaction value declared by the importer should form the basis of assessment unless the same is rejected, for reasons set out in Rules of Customs Valuation Rules.
Facts- The issue in the instant case pertains to import of mix lot of Polyester Knitted Fabrics. The revenue had sought to revise the assessable value by rejecting the declared assessable value.
Conclusion- Tribunal in the case of M/s. Sedna Impex India P. Ltd. has held that the transaction value declared by the importer should form the basis of assessment unless the same is rejected, for reasons set out in Rules of Customs Valuation Rules. Section 14 of the Customs Act, 1962 read with Customs Valuation Rules makes it abundantly clear that transaction value in the ordinary course of commerce is to be taken as the assessable value. The Customs Valuation Rules outlines the step-by-step methodology to be adopted for redetermination of the assessable value in certain cases. The primary requirement for re-determination of the value is that the transaction value should be rejected for cogent reasons prescribed in the Customs Valuation Rules.
Held that the decision in the case of M/s. Sedna Impex India P. Ltd., covers the issue raised in instant dispute. Consequently following the decision in the case of M/s. Sedna Impex India P. Ltd, the appeal is allowed.
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