Assessable value enhancement cannot rest on mere clearance at higher value; importer may still contest without a speaking order.

Enhancement of assessable value cannot be sustained merely because the importer cleared goods at the higher value; such clearance, made for practical reasons, does not amount to consent. The proper officer must first inform the importer in writing of the grounds for doubting the declared value and give a reasonable opportunity before a final decision. Where the assessment is not supported by a speaking order and the enhancement was not duly accepted, the importer retains the right to contest it. The absence of reasons and due process justified interference and remand for fresh consideration in accordance with natural justice.

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Issues: Whether enhancement of assessable value could be sustained merely because the importer cleared the goods at the enhanced value, and whether the importer was entitled to contest the enhancement in the absence of a speaking order.

Analysis: The circular relied upon 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. It contemplated dispensation with a speaking order only where enhancement was accepted by both sides. Clearance of goods at the enhanced value to avoid demurrage or for similar practical reasons did not, by itself, amount to consent to the enhancement. The importer retained the right to challenge the assessment and the absence of reasons by the assessing authority justified interference and remand for a fresh decision in accordance with natural justice.

Conclusion: The objection of Revenue was rejected and the importer's challenge to the enhancement remained open; the remand to the original authority was upheld.

Final Conclusion: The appeal failed, and the assessment was required to be reconsidered by the original authority after following due process.

Ratio Decidendi: Mere clearance of goods at an enhanced value does not amount to consent to the enhancement, and the importer's right to contest the assessment survives unless the enhancement is accepted after being duly informed and heard.

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