Transaction value and contemporaneous import evidence must be properly examined before alleging undervaluation and remanding for fresh consideration.

Differential customs duty, interest and penalties for alleged undervaluation could not be sustained where the adjudication order failed to properly examine the declared transaction value, contemporaneous import evidence and the importer's explanations. The order relied mainly on the managing partner's statement and recovered proforma invoices, quotations and pricelists, but did not make a clear finding on rejection of transaction value or re-determination of assessable value. It also ignored the plea that remittances matched the invoice value and summarily discarded contemporaneous import documents without proper scrutiny. As the order was not a speaking order, it was set aside and the matter remanded for de novo consideration with personal hearing.

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Issues: Whether the demand of differential customs duty, interest and penalties for alleged undervaluation of imported goods could be sustained when the adjudication order failed to properly examine the transaction value, the evidence of contemporaneous imports and the explanations furnished by the importer.

Analysis: The order was found to rest almost entirely on the statement of the managing partner and on recovered proforma invoices, quotations and pricelists, without a proper finding on rejection of the declared transaction value or on re-determination of assessable value. The evidentiary plea that remittances matched the invoice value was not dealt with. The contemporaneous import documents produced by the importer were also summarily discarded as unauthenticated, although they contained relevant particulars such as bill of entry details, origin, items, quantity and declared value. The order was further found to be silent on material submissions and therefore not a speaking order. In such circumstances, fresh consideration by the adjudicating authority was necessary.

Conclusion: The impugned order was set aside and the matter was remanded for de novo consideration after proper appreciation of evidence and after granting personal hearing.

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