Tradewell Vs Commissioner of Customs (CESTAT Delhi)
M/s Tradewell, Jaipur, appealed an order from the Commissioner (Appeals) that upheld a Deputy Commissioner’s decision regarding the assessment of two Bills of Entry from late 2015. The Deputy Commissioner had rejected the declared transaction value of US$ 3,500 per paper cup machine, increasing it to US$ 7,500 per machine. Crucially, neither the Deputy Commissioner’s original order nor the Commissioner (Appeals)’s impugned order provided specific reasons for rejecting the declared value or determining the new value. Instead, they solely relied on a previous order dated 8.8.2019 issued by the Commissioner of Customs, Jodhpur, concerning different Bills of Entry.
The background involved a Directorate General of Revenue Intelligence investigation in 2015 suggesting mis-declaration of prices. This led to show cause notices and the aforementioned Commissioner’s order dated 8.8.2019, which rejected transaction values for earlier imports, ordered confiscation, and imposed penalties. However, this specific order from 8.8.2019 had already been challenged by Treadwell before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT). CESTAT, by a Final Order dated 08.02.2022, had set aside the Commissioner’s order of 8.8.2019, allowing Treadwell’s appeal. An appeal by the Revenue against this CESTAT order was dismissed by the High Court.
