Universal Offset Vs Commissioner of Customs (Export) (CESTAT Delhi)
CESTAT Delhi held that in absence of evidence of over-valuation of export goods, the transaction value was wrongly rejected under Rule 8 of the Customs Valuation Rules. Thus, value declared in shipping bills accepted.
Facts- The order-in-appeal dated 04.02.2021 passed by the Commissioner of Customs (Appeals), New Customs House, New Delhi is assailed by M/s Universal Offset and its Managing Partner Shri Vikas Gupta in these appeals. The impugned order rejected the appeals filed by Universal and Vikas and upheld the order-in-original dated 06.07.2018 passed by the Additional Commissioner of Customs, ICD, Patparganj, New Delhi.
It is mainly alleged that the export goods were highly over-valued so that the export obligation could be fulfilled in respect of the EPCG machinery imported as the export obligation period was to expire soon.
Conclusion- The cost of manufacture of the goods could be much lower than the export price. What needs to be checked is that the values are consistent on the values of goods like, kind and quality exported to other buyers. There is no information about export to other buyers and the appellant’s own exports in the past are also said to be over valued. This also on record that remittances in respect of the past shipping bills were received and there is no evidence of flow back to the buyer in UAE.
