Tribunal Upholds Decision on Imported Fabrics Value Dispute

The Appellate Tribunal CESTAT NEW DELHI upheld the decision of the Commissioner (Appeals) in a case where the Revenue appealed against the enhancement of value on imported polyester knitted fabrics. The Tribunal found that the Commissioner (Appeals) correctly followed the Supreme Court decision in Eicher Tractors Ltd. v. Commissioner of Customs, emphasizing that transaction value cannot be rejected without clear evidence. As the respondents paid duty under protest and the NIDB data cited by the Revenue merely followed benchmark prices, the Tribunal rejected the Revenue's appeal, affirming the decision of the Commissioner (Appeals).

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The Appellate Tribunal CESTAT NEW DELHI, consisting of Shri M. Veeraiyan and P.K. Das, JJ., heard an appeal filed by the Revenue against Final Order No. 188/NS/GGN/06 dated 30-6-06 by the Commissioner (Appeals) that set aside the enhancement of value on a consignment of polyester knitted fabrics. The respondents imported the fabrics, declared at US $ 1.4 per kg, but the assessing officer increased the value to US $ 2.5 per kg, which the respondents paid under protest. The Commissioner (Appeals) overturned the enhancement, prompting the Revenue to file the appeal. The Revenue argued that the Commissioner (Appeals) did not properly examine the issue, citing NIDB data indicating the value of knitted fabrics at US $ 2.5 per kg. However, the Tribunal found that the respondents paid duty under protest, as evidenced by the TR-6 challan, and that the Commissioner (Appeals) correctly followed the decision of the Hon'ble Supreme Court in Eicher Tractors Ltd. v. Commissioner of Customs, which stated that transaction value cannot be rejected without clear and cogent evidence. The Tribunal noted that the price could not be enhanced solely based on benchmark price without any reason for rejecting transaction value, and that the NIDB data relied on by the Revenue followed the benchmark price. Consequently, the Tribunal upheld the Commissioner (Appeals) decision, rejecting the Revenue's appeal.

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