2004 (10) TMI 453 - AT - Customs

CESTAT allows appeal in Gambier import value dispute, emphasizing need for accurate valuation

The Appellate Tribunal CESTAT, New Delhi allowed the appeal in favor of the appellants in a dispute over the declared value of imported Gambier. The ... Valuation - Contemporaneous import Issues:1. Discrepancy in the declared value of imported goods.2. Reliability of contemporaneous imports for enhancing the value.3. Impact of currency fluctuations on the declared value.4. Use of invoices from different countries for valuation.Analysis:The appeal before the Appellate Tribunal CESTAT, New Delhi involved a dispute regarding the declared value of Gambier imported by the appellants during a specific period. The Revenue contested the declared value and issued a show cause notice to enhance it based on invoices from M/s. Trusha International Pvt. Ltd. and Ratansingh & Co. Pvt. Ltd. The appellants argued that the contemporaneous imports relied upon by the Revenue were not comparable to their import, as they involved different quantities and were sourced from different countries. They highlighted the fluctuations in the Indonesia currency during the relevant period, affecting the exchange rates and prices significantly.The Tribunal considered the discrepancy in the quantity of goods mentioned in the invoices relied upon by the Revenue compared to the actual consignments imported by the appellants. The appellants imported larger quantities directly from Indonesia, whereas the invoices were from a Singapore company and represented only a fraction of the goods imported by the appellants. The Tribunal noted that since the appellants imported a higher quantity of goods from a different country, the invoices from Singapore could not be the sole basis for enhancing the declared value. Consequently, the impugned order was set aside, and the appeal was allowed in favor of the appellants.In conclusion, the Tribunal's decision emphasized the importance of considering the specific circumstances of each import transaction, including quantity, country of origin, and currency fluctuations, in determining the declared value of imported goods. The reliance on invoices from different countries with significantly lower quantities was deemed inappropriate for enhancing the value declared by the appellants, leading to the appeal being allowed in their favor.