Case Law Details
S K Universal Pvt Ltd Vs Commissioner of Customs (CESTAT Mumbai)
Introduction: The case of “S K Universal Pvt Ltd vs. Commissioner of Customs” heard by the Central Excise and Service Tax Appellate Tribunal (CESTAT) Mumbai revolves around the valuation of ‘cut and polished diamonds’ imported by the appellant. The dispute arose from a significant variation in the declared value and the value determined by a trade advisory panel.
Detailed Analysis:
1. Background of the Case: The appellant, S K Universal Pvt Ltd, is an importer of ‘cut and polished diamonds.’ The case centers on the procurement of 1461.23 carats of diamonds valued at US $ 522,591 (₹2,62,60,198) according to an invoice from M/s Belstar Jewellery (LLC), Dubai. The bill of entry declared an assessable value of ₹ 2,65,22,800. However, a ‘trade advisory panel’ was consulted, which suggested a significantly lower value.
2. Key Arguments: The appellant contested the re-determination of value by the Commissioner of Customs. They argued that the adjudicating authority selectively used the trade advisory panel’s recommendations to suit its convenience. Additionally, the appellant claimed that the values assigned for confiscation were inconsistent with Customs Valuation Rules. They asserted that there was no evidence of complicity or a relationship with the buyer to justify rejecting the declared value. Furthermore, they contended that the second report’s appraisal indicated values higher than the declared value, questioning the charge of overvaluation.
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