Case Law Details
Ajay Traders Vs C.C.-Mundra (CESTAT Ahmedabad)
Introduction: The CESTAT Ahmedabad recently addressed a crucial case involving Ajay Traders and C.C.-Mundra regarding the enhancement of the value of imported goods. The dispute arose when Customs Authorities increased the assessed value based on data from a private website, Zuaba.
Detailed Analysis:
1. Background of the Case: Ajay Traders filed a bill of entry for Jute Bags, but Customs enhanced the value after relying on Zuaba portal data. The appellant challenged this, leading to a series of legal proceedings.
2. Legal Arguments:
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- Appellant’s Counsel argued against the basis for value enhancement, emphasizing the lack of contemporaneous goods.
- Allegations were made about Zuaba’s data authenticity, stating it was not approved by any government agency.
- The appellant highlighted the disparity between the imported goods’ origin (Bangkok) and Zuaba’s data (Bangladesh).
3. Revenue’s Defense:
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- The Revenue, represented by Superintendent R R Kurup, supported the Customs decision, citing a precedent involving Zuaba data.
4. CESTAT Ahmedabad’s Ruling:
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- The tribunal scrutinized Zuaba’s reliability and found the data to be unauthenticated and not approved by any government agency.
- The judgment emphasized the disparity in origin and declared goods, discrediting Zuaba’s relevance.
- Notably, the Lan Eseda Industries case, cited by the Revenue, was distinguished due to different facts.
Conclusion: The CESTAT Ahmedabad, on November 30, 2023, set aside the impugned order, ruling in favor of Ajay Traders. This case establishes that Customs Authorities cannot enhance the value of imported goods based on unverified data from a private website, emphasizing the need for authenticity in such assessments.
This detailed analysis explores the legal intricacies, arguments, and the final ruling in the Ajay Traders vs. C.C.-Mundra case, providing a comprehensive understanding of the matter and its implications.
FULL TEXT OF THE CESTAT AHMEDABAD ORDER
The brief facts of the case are that appellant filed bill of entry No. 5257202 dated 13.05.2016 for clearance of stock lot of Jute Bags (new Jute bags) classifying the same under CTH 6305 1040 having gross weight 48,065 Kgs. valued Rs. 11,45,747 (CF). A first cheque was given and as per the examination report the goods were examined 10% under the supervision of superintendent (DOCS) and in presence of brokers representative, verified products description, weight, quantity with respect to invoice, packing list and also verified that goods were new.
1.1 In view of the examination, the custom has enhanced the value in the bill of entry. Accordingly, assessed to duty on the enhanced value at Rs. 62.44 per Kg valued at Rs. 30,84,726/- contending that the importer has consented vide order dated 19.05.2016. Being aggrieved by the enhancement of the value the appellant filed appeal before Commissioner(Appeals) who vide Order-in-Appeal No. MUN-CUSTM-000- APP-002-17-18 dated 07.04.2017 has remitted the matter with direction to examine available facts, documents, submissions and case Laws relied upon by them and then pass a speaking order in case after following principle of natural justice and adhering to the legal position.
1.2 On the remand proceeding the Adjudicating Authority rejected the declared value of the appellant, in the bill of entry and upheld the value enhanced for the assessment and re-determined the value at Rs. 62per Kg as per Rule 3(4) read with Rule 5 of Customs Valuation Rules, 2007 and bill of entry has been assessed
1.3 Being aggrieved by the de-novo Oder-in-Original dated 04.2018, the appellant filed an appeal before the commissioner (Appeals). who vide impugned Order-in-Appeal dated 16.11.2018 rejected the appeal and upheld the Order-in-Original dated 06.04.2018. Therefore, the present appeal filed by the appellant.
2. Shri Vinay Bairagra, Learned Counsel appearing on behalf of the appellant submits that there is no basis of enhancement of the value, no contemporaneous goods were
2.1 He further submits that the entire enhancement of the value is based on the data taken from the Zuaba Portal and authenticity of the same is not known, there is no evidence of the genuineness of the data in Zuaba. He submits that in the present case goods were imported from Bangkok, whereas, the data which was relied upon is in respect of Bangladesh. The quality of the goods whether identical or otherwise is also not Particularly, when the consignment in the present case is stock lot of Jute Bags, therefore, the basis for enhancement of the value is not correct. In respect of his submission, he placed reliance on the following Judgments:
- Commissioner of Customs Import Mumbai Ganpati Overseas 2023 SCC OnLine SC 1259
- KVS Traders and others CCE Jamnagar (Preventive) final order No.
3. Shri R R Kurup, Learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned He placed reliance on the following judgment:
- Lan Eseda Industries V. Commissioner Of Customs, Mumbai-2010 (258) ELT 3 (SC)
4. We have carefully considered the submission made by both the sides and perused the We find that the appellant has imported stock lot of Jute Bags, which was declared in the bill of entry. The department has enhanced the value on the basis of data gathered from the website of Zuaba. It is undisputed fact that the authenticity of the platform of Zuaba has not been established or department has not made any effort to verify the authenticity of the same. It was also a submission of the appellant that it is not approved by any government agency and the same is a private platform. Therefore, the sole reliance made on the data appearing on Zuaba platform, in our view is not correct and legal.
4.1 Moreover, even from that data it does not appear that the goods imported by the appellant is identical to the goods described in the data of Zuaba It is also clear that in the data of Zuaba the country of origin is Bangladesh, whereas, in the present case the goods were imported from Bangkok, for this reason also the data relied upon by the department is absolutely incorrect.
4.2 In our view, since the data of Zuaba is not authentic, there is no any other evidence to doubt the value declared by the appellant. The department has not discharged the burden in rejecting the declared value. Even from the data of Zuaba which was relied upon by the department that the goods appearing on that data are not similar or identical to the one imported by the appellant. A perusal of the description of the said goods mention in the said table. Such as ‘New Binola Jute Bags’, ‘Vegetable Oil Treated New Jute Bags’ etc. are not identical to the goods under import. The goods in question are stock lot of goods, which though new, in any case cannot be compared with the goods which have been mentioned in the said Table. The stock lot, if not of the same quality of which the new goods are, and thus, the stock lot is available at a lesser price in the market. Therefore, we do not find any basis for rejecting the declared value by the appellant.
4.3 as regard the Hon’ble Supreme Court judgment in case of LAN Eseda Industries Ltd (Supra) relied upon by the Learned AR, on careful analysis of the said judgment, we find that in that case Hon’ble Apex Court considered the matter among others on the very important fact that the importer and supplier were related persons, which is not the fact in the present case. Therefore, the ratio of the judgment in LAN Eseda industries Ltd cannot be applied in the facts of the present Hence, same is clearly distinguished.
5. Accordingly, we set aside the impugned order and allow the appeal with consequential
(Pronounced in the open court on 30.11.2023)
