Mahabal Impex Vs Commissioner of Customs (Appeals) (CESTAT Delhi)
In Mahabal Impex Vs Commissioner of Customs (Appeals), the Delhi CESTAT examined an appeal challenging enhancement of the assessable value of imported polyester knitted fabrics from Hong Kong. The importer had filed a Bill of Entry dated 13 November 2018 declaring the value at US $1.40 per kg. However, the assessing officer proposed enhancement of the value to US $2.30 per kg after doubting the correctness of the declared value.
The records showed that the importer accepted the enhanced value proposed by the department and paid customs duty on that basis. After payment of duty, the goods were cleared through an out-of-charge order. Subsequently, the importer filed an appeal challenging the enhancement of value.
The Commissioner (Appeals) noted that the importer had neither lodged any protest regarding payment of duty on the enhanced value nor produced any correspondence showing that the enhancement had been challenged before the assessing officer. On this basis, the Commissioner (Appeals) dismissed the appeal.
Before the Tribunal, the importer argued that the enhancement of value was contrary to the Delhi High Court judgment in Niraj Silk Mills, contending that valuation enhancement could not be based solely on NIDB data. The department, however, argued that the facts of the present case were different and that the High Court decision was not applicable.
