2008 (8) TMI 759 - AT - Customs

Tribunal sets aside value enhancement orders for silk fabric, rules in favor of importer

RC. INTERNATIONAL Versus COMMISSIONER OF CUSTOMS, DELHI-I

The Tribunal allowed the appeal, setting aside the orders enhancing the declared value for silk fabric clearance. The Tribunal deemed the value initially ... Valuation - Transaction value Issues involved: Appeal against the order of the Commissioner of Customs (Appeals) regarding enhancement of value declared for silk fabric clearance.Summary:Issue 1: Adjournment request deniedThe appellant sought an adjournment due to the illness of their senior, but the request was denied as the matter had been adjourned multiple times previously.Issue 2: Enhancement of declared valueThe appellant filed a bill of entry for silk fabric clearance at a declared unit price of US $1.40 per sq. mtr., which was later enhanced to US $2.29 per sq. mtr. The enhancement was reportedly done with the importer's representative's concurrence. The appellant paid the assessed duty and cleared the goods before appealing against the assessment order.Issue 3: Lack of evidence for value enhancementThe Tribunal directed the Department to produce assessment documents to justify the enhancement of value. Despite multiple hearings and extensions, the Department failed to provide the relevant document supporting the value enhancement. No speaking order was issued in this case, and the appellant argued that they had taken release of the material at the enhanced price out of urgency but did not accept the enhanced value due to lack of evidence.Judgment:The Tribunal found merit in the appeal and set aside the orders of the Commissioner of Customs (Appeals) and the assessment order that enhanced the value. The value declared by the importer was deemed appropriate for duty payment, and the appeal was allowed with consequential relief. The decision was dictated and pronounced in open court on 6-8-2008.