Oswal Metal Works Vs Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that a proforma invoice is in the nature of a quotation or offer and hence does not constitute valid basis for enhancement of value of the imported goods. Enhancement set aside since there is no evidence to show that there is flow back of amount.
Facts- The appellant filed Bill of Entry for the clearance of ‘Globe’ brand and ‘Lucky’ brand padlocks. The value was declared at USD 6337.31 CIF. Another importer namely M/s. Gurudev Trading Co. also filed Bill of Entry for the same item. Both the imports were made from M/s. Shanghi Light Industries Equipment (Groups) Co. Ltd. China.
The department suspecting under-invoicing obtained quotation from M/s. Shanghi Light Industries, China and M/s. Guangdong Agriculture Machinery Import & Export Corporation, China and found that there was a big difference in values between the quotation and the declared invoice value. Meanwhile, in a similar import done by one M/s. Evergreen Enterprises from the same supplier viz. M/s. Shanghi Light Industries, China, the department enhanced the value based on the quotation with the acceptance from the importer.
The Additional Commissioner (SIIB) passed Order in Original dated 22.4.2003 re-determining the declared value, confiscated the goods with an option to redeem the goods and imposed penalty. The appeal filed by the appellant herein was allowed by the learned lower Appellate Authority. Department preferred appeal before CESTAT and the Tribunal however the same was rejected.
