Commissioner of Customs Vs Kaveri Silks & Jute Private Limited (CESTAT Chennai)
CESTAT Chennai held that transaction value declared by the importer duly accepted as earlier imports cleared accepting the declared value and also value of the contemporaneous import of identical goods has not been conclusively arrived at by the lower adjudicating authority.
Facts- The Respondents have filed seven Bills-of-Entry for clearance of Raw Silk Yarn in hanks, classifying the imported goods under CTH 5002 0010 at the declared unit price of USD 13.75 (CIF) per kg. and the country of origin of the goods being Uzbekistan.
Suspecting under-valuation of the imported goods, considering contemporaneous import prices of similar goods of same description, the importer was asked to justify the declared value. In both the above appeals, the invoices were raised by M/s. Bedeil General Trading LLC., Dubai.
Being aggrieved, the importer had filed Writ Petition before the Hon’ble High Court at Madras for the acceptance of the contract value / declared value for the Bills-of-Entry filed. The Hon’ble High Court directed the Revenue to release the imported goods on furnishing of a Bank Guarantee for 50% of the differential duty and further, a personal bond for the remaining 50% of the differential duty. In compliance with the above directions, the imported goods were assessed provisionally and cleared on the above terms.
As the Department noticed contemporaneous prices of imports of Raw Silk Yarn of Uzbekistan origin at USD 28.50 (CIF) per kg. vide Bill-of-Entry No. 699388 dated 25.11.2010, Show Cause Notices consequently came to be issued to the importer proposing final assessment after enhancement of the transaction value u/s. 18(2) of the Customs Act, 1962 and demanding differential duty along with interest thereon u/s. 18(3) read with Section 28AB of the Customs Act, 1962, while also proposing confiscation of the impugned goods for deliberate under-valuation u/s. 111(m) of the Customs Act, 1962 apart from imposition of penalty u/s. 112(a) of the Customs Act, 1962.
Commissioner (A) allowed the appeal. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that we are inclined to accept the transaction value, as declared by the importer-respondent. As earlier imports of the respondent were cleared accepting the values declared and also since the value of the contemporaneous import of identical goods has not been conclusively arrived at by the lower adjudicating authority, the declared transaction value has to be accepted. Hence, there is no need to pass any order in respect of confiscability of the goods or on imposition of penalty.
FULL TEXT OF THE CESTAT CHENNAI ORDER
M/s. Kaveri Silks & Jute Private Limited, Bangalore are the Respondent herein in the above two appeals filed by the Revenue against the Order-in-Appeal C.Cus. No. 628 to 634/2013 dated 18.04.2013 passed by the Commissioner of Customs (Appeals), Custom House, Chennai.
2.1 Brief facts of these appeals indicate that the Respondents have filed seven Bills-of-Entry for clearance of Raw Silk Yarn in hanks, classifying the imported goods under CTH 5002 0010 at the declared unit price of USD 13.75 (CIF) per kg. and the country of origin of the goods being Uzbekistan.
2.2 Suspecting under-valuation of the imported goods, considering contemporaneous import prices of similar goods of same description, the importer was asked to justify the declared value. In both the above appeals, the invoices were raised by M/s. Bedeil General Trading LLC., P.O. Box – 52018, Dubai, U.A.E.
2.3 Being aggrieved, the importer had filed Writ Petition No. 30153 of 2010 before the Hon’ble High Court at Madras for the acceptance of the contract value / declared value for the Bills-of-Entry filed. The Hon’ble High Court directed the Revenue to release the imported goods on furnishing of a Bank Guarantee for 50% of the differential duty and further, a personal bond for the remaining 50% of the differential duty. In compliance with the above directions, the imported goods were assessed provisionally and cleared on the above terms.
3. As the Department noticed contemporaneous prices of imports of Raw Silk Yarn of Uzbekistan origin at USD 28.50 (CIF) per kg. vide Bill-of-Entry No. 699388 dated 25.11.2010, Show Cause Notices consequently came to be issued to the importer proposing final assessment after enhancement of the transaction value under Section 18(2) of the Customs Act, 1962 and demanding differential duty along with interest thereon under Section 18(3) read with Section 28 AB of the Customs Act, 1962, while also proposing confiscation of the impugned goods for deliberate under-valuation under Section 111(m) of the Customs Act, 1962 apart from imposition of penalty under Section 112(a) of the Customs Act, 1962.
4. In reply to the above notices, the noticee-importer inter alia submitted that: –
