Commissioner of Customs Vs Artex Textile Private Limited (CESTAT Delhi)
CESTAT Delhi dismissed Revenue’s appeals challenging the common order of the Commissioner (Appeals), which had set aside enhancement of the declared transaction value in respect of 57 Bills of Entry filed by Artex Textile Private Limited for import of various kinds of polyester knitted fabrics of different weights and colours during the period from 8 June 2018 to 9 February 2019. The respondent importer had been regularly filing Bills of Entry at ICD Sonepat on the basis of self-assessment of customs duty on the declared transaction value. The Assistant/Deputy Commissioner of Customs, however, enhanced the value above the declared transaction value without passing a speaking order explaining the grounds for rejecting the declared value and adopting the enhanced value.
The importer challenged the reassessments before the Commissioner (Appeals), contending that its acceptance of the enhanced value proposed by Customs did not prevent it from challenging the reassessment in appeal. It relied upon Dunlop India Limited Vs Union of India, 1983 (13) ELT 1566 (SC) for the principle that there is no estoppel against law in taxation matters. It further contended that the declared transaction value had not been rejected in accordance with the Customs Act and Customs Valuation Rules and that the assessing authority had failed to proceed sequentially through the applicable valuation rules before determining a substituted value. The importer also referred to an earlier Order-in-Appeal dated 31.12.2014 in its own case involving similar imports, where reassessment had been set aside and the declared value accepted; that order had also been accepted by the Department and consequential refund granted.
