Appeals by M/s. Combine Trading Co. and Shri Jaspreet Singh dismissed in customs undervaluation case. Investigations revealed mis-declaration and use of parallel invoices.
CESTAT Delhi rules Customs officers lack power to re-determine export FOB value. Overturns order against Jayantah Trading Co on over-valuation, penalties, and drawback. Reaffirms transaction value primacy.
CESTAT Delhi held that re-assessment will come to an end once the goods are exported in case of Shipping Bills and once the officer gives an order clearing the goods for home consumption in case of imports.
In the matter above-mentioned CESTAT Delhi Bench held that customs officers are stranger to the contract between the exporter and the overseas buyer and has no locus standi to change the FOB value of the goods.
Based on these observations the contentions of the appellant in their reply dated 22.6.2020 that 100% service tax payment is made by service receiver, was opined contrary to the above observations.
CESTAT Delhi held that Customs Brokers Licensing Regulations doesn’t requires the Customs Broker to physically go to the premises of the client to ensure that they are functioning at the premises.
CESTAT Delhi held that penalty under section 114 of the Customs Act, 1962 cannot be imposed in the absence of any evidence that there was fraudulent export of goods. Accordingly, appeal allowed and penalty set aside.
CESTAT Delhi held that re-determination of transaction value merely on the basis of emails of quotations of different supplier cannot be sustained since there is absolutely no evidence for rejection of transaction value.
CESTAT Delhi held that confiscation of goods justified as Pan Masala and Gutkha were clandestinely manufactured and cleared under different brands without authorization. Accordingly, order upheld and appeals dismissed.
The assessee’s application, which was filed on 9-2-2017, was rejected by the Assistant Commissioner and later by the Commissioner (Appeals) on the grounds that it was submitted beyond the six-month deadline stipulated under Section 102(3) of the Act.
