Jai Mata Di Trading Vs Commissioner (CESTAT Allahabad)
The appeals before the Tribunal concerned whether importers who had submitted written consent letters accepting enhancement of the value of imported goods at the time of customs clearance could subsequently challenge the reassessed value.
The appellants were engaged in the import and trading of polyester knitted fabrics from Hong Kong and China during May and June 2019 through ICD Dadri. They filed Bills of Entry based on negotiated transaction values and submitted the required documents. According to the appellants, although they had correctly self-assessed customs duty based on invoice values, customs authorities did not issue Out of Charge Orders. To avoid delays, they repeatedly requested provisional or final clearance on payment of duty on the enhanced value under protest. However, no action was taken on these requests, and the appellants claimed they were ultimately compelled to submit consent letters accepting the enhanced valuation.
The customs authorities rejected the declared transaction value and enhanced the assessable value based on the consent letters. No speaking orders were issued. Appeals filed before the Commissioner (Appeals) were dismissed on the ground that the appellants had accepted the enhancement in writing and, therefore, no speaking order was required under Section 17(5) of the Customs Act, 1962.
