MKY Enterprises Pvt. Ltd. Vs Commissioner of Central Excise & CGST (CESTAT Allahabad)
CESTAT Allahabad allowed a batch of appeals filed by MKY Enterprises Pvt. Ltd. concerning enhancement of the assessable value of imported fabrics. The principal issue was whether the Commissioner (Appeals) was justified in rejecting the appeals merely because the importer had given written letters accepting the enhanced value at the time of clearance. The appellant, a regular importer of fabrics from China, had imported 80 consignments between 01.07.2019 and 18.09.2019 at ICD, Dadri. According to the appellant, the goods had been correctly self-assessed on the basis of invoice values, but no Out of Charge Orders were issued. To avoid continued detention and delay, it repeatedly requested provisional clearance on payment of duty on the enhanced value under protest. The appellant alleged that those requests were ignored and that it was ultimately compelled to furnish consent letters accepting the valuation proposed by Customs.
The importer contended that Customs could not discard the declared transaction value without complying with Section 14 of the Customs Act, 1962 and the Customs Valuation Rules, 2007. The acceptance letters themselves did not disclose the contemporaneous import data said to justify the enhancement. The appellant further argued that valuation under the Rules required examination of relevant comparability parameters and could not be sustained merely by asserting that contemporaneous imports existed. Despite subsequent requests, no speaking order was passed. The Commissioner (Appeals) nevertheless upheld the reassessment on the ground that, once the importer had accepted the enhanced value in writing, Section 17(5) did not require a speaking order.
