Natural justice in import valuation: clearance on enhanced value does not waive the right to challenge the assessment.

Imported goods could not be subjected to enhanced assessable value without prior written reasons for doubting the declared value and a reasonable opportunity of hearing; the exception to a speaking order applied only where both sides agreed to enhancement. Clearance of the goods on the enhanced value, including to avoid practical difficulties such as demurrage, did not amount to consent or waive the importer's right to contest the assessment. The challenge to valuation was therefore not barred, and the assessment had to comply with natural justice; the Commissioner (Appeals)'s order was sustained and the revenue's appeal failed.

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Issues: Whether enhancement of the declared assessable value of imported goods could be sustained without first issuing reasons and an opportunity of hearing, and whether clearance of the goods on enhanced value barred the importer from challenging the assessment.

Analysis: The circular governing value enhancement required the proper officer to intimate in writing the grounds for doubting the declared value and to afford a reasonable opportunity before taking a final decision. The exception for dispensing with a speaking order applied only where both sides agreed to the enhancement. Mere clearance of the goods on the enhanced value, even to avoid demurrage or for similar practical reasons, did not amount to consent to enhancement. The importer retained the right to challenge the assessment, and the lack of a reasoned order justified interference.

Conclusion: The challenge to the enhanced valuation was not barred by clearance of the goods, and the assessment was required to comply with natural justice.

Final Conclusion: The order of the Commissioner (Appeals) was sustained and the revenue's appeal failed.

Ratio Decidendi: Clearance of imported goods on an enhanced value, without clear consent to such enhancement, does not waive the importer's right to contest valuation, and enhancement must satisfy the requirement of prior reasons and hearing.

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