MMM Overseas Pvt Ltd Vs Principal Commissioner of Customs (CESTAT Delhi)
Revaluation Based on Different Supplier’s Quotation Not Sustainable
CESTAT Delhi held that re-determination of transaction value merely on the basis of emails of quotations of different supplier cannot be sustained since there is absolutely no evidence for rejection of transaction value.
Facts- The order dated 31.08.2020 passed by the Principal Commissioner of Customs adjudicating two show cause notices dated 28.09.2017 and 19.09.2019 has been assailed. The transaction value of the goods have been rejected under rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 and re-determined under rule 5 of the 2007 Valuation Rules. The goods have also been confiscated but an option has been given to the appellant to redeem the goods on payment of redemption fine. The order also imposes penalty upon the appellant and Mahesh Sabharwal.
Conclusion- The e-mails and electronic evidence could not be relied upon to prove under valuation in the absence of any certificate issued under section 138C of the Customs Act.
Held that if the emails and the statement of Mahesh Sabharwal are discarded, then there is absolutely no evidence for rejection of the transaction value declared by the appellant. In such circumstances, the impugned order rejecting the transaction value under rule 12 of the 2007 Valuation Rules cannot be sustained. The re-determination of the transaction value, therefore, would not arise.
