Continental Trading Co Vs Principal Commissioner (CESTAT Delhi)
Summary: The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi, examined an appeal filed by M/s Continental Trading Co. challenging the Order-in-Original dated 24 December 2022 issued by the Commissioner of Customs, ICD Tughlakabad. The Commissioner had rejected the appellant’s declared transaction value of ₹11.05 crore under Rule 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007, and re-determined the assessable value at ₹14.19 crore under Rules 4 and 9. Based on this revaluation, the Commissioner ordered confiscation of goods under Section 111(m) of the Customs Act, recovery of differential duty of ₹87.18 lakh with interest, and imposed penalties under Sections 114A and 114AA.
The appellant argued that the order was arbitrary and unlawful, asserting that the declared values were based on genuine transaction prices supported by import documents and banking payments. It claimed to have an existing agreement with the overseas supplier since January 2018, explaining that lower prices were due to long-term business relations. The appellant contended that rejection of its transaction value was unjustified merely because other importers had declared higher prices. It further argued that any re-determination must be based on the least contemporaneous value and that confiscation and penalties were unwarranted.
