2013 (7) TMI 975 - AT - Customs

Tribunal upholds decision on undervaluation of imported fabric, emphasizing need for evidentiary support

CC, Delhi-IV, Faridabad Versus Balaji International & Artex Textile Pvt. Ltd.

The Tribunal rejected the Revenue's appeals regarding undervaluation of imported knitted fabric, citing lack of new evidence and consistent rulings ... Valuation of the imported knitted fabric - enhancement of value based upon some NIDB data - Held that: - inasmuch there was no evidence reflecting upon the fact that the transaction value was not correct the value, and inasmuch as there was no contemporaneous import, loading of assessable value was not justified - appeal dismissed - decided against Revenue. Issues: Undervaluation of imported knitted fabricAnalysis:Issue 1: Undervaluation of imported knitted fabricThe judgment revolves around the undervaluation of imported knitted fabric by the respondents. The original adjudicating authority increased the value of the fabric based on NIDB data. However, the Commissioner (Appeals) noted the lack of evidence to prove the incorrectness of the transaction value and the absence of contemporaneous imports to justify loading the assessable value. The Commissioner relied on a previous Tribunal decision and a Supreme Court ruling in favor of the respondents. The Tribunal mentioned that similar orders of the Commissioner (Appeals) were challenged by the Revenue in various appeals, which were all rejected. Specifically, in a case involving Artex Textiles Pvt. Ltd., the Tribunal upheld the Commissioner's decision. Given the consistent rulings and lack of new evidence, the Tribunal rejected the Revenue's appeals, as the issue was already settled, especially concerning Artex Textiles Pvt. Ltd.This detailed analysis of the judgment highlights the key issue of undervaluation of imported knitted fabric and the Tribunal's decision based on previous rulings and lack of new evidence to justify a different outcome.