Maruti Fabric Impex Vs Commissioner of Customs (CESTAT Allahabad)
Summary: CESTAT Allahabad allowed 26 connected customs appeals filed by Maruti Fabric Impex and set aside the Orders-in-Appeal which had sustained enhancement of the assessable value of imported polyester knitted fabrics merely because the importer had submitted written letters accepting the enhanced valuation. The Tribunal held that acceptance of reassessment for clearance of goods and waiver of a speaking order under Section 17(5) of the Customs Act, 1962 cannot be treated as surrender of the independent statutory right to challenge the reassessment in appeal.
The appellant had imported 26 consignments of “Polyester Knitted Fabrics of Mixed Colour, Weight and Length” from China during 07.06.2019 to 07.08.2019 through ICD, Dadri and declared a transaction value of USD 1.35 per kg on the basis of the foreign supplier’s commercial invoices. On examination, the goods were found to conform to the declarations in the Bills of Entry and there was no allegation regarding their description, quantity or nature. According to the appellant, despite correct self-assessment, Out of Charge Orders were not issued. To avoid demurrage, detention and delay, it repeatedly requested provisional/final clearance on payment of duty on the enhanced value under protest. It contended that those requests were ignored and it was ultimately compelled to submit consent letters agreeing to the valuation adopted by Customs.
