Natural justice in customs valuation: enhancement based on market enquiry material was not interfered with on the challenge raised.

Enhancement of assessable value and resulting duty liability was upheld where the challenge based on non-confrontation of market enquiry material and denial of hearing failed. The Tribunal had found that the market enquiry report was not available for perusal and that the assessable value was enhanced on the basis of the importer's statement, yet the objection that the adjudication was vitiated by breach of natural justice was rejected. The Supreme Court found no merit in the contention that the assessment could be interfered with on the ground of non-supply of the market record or absence of opportunity of hearing, and the appeal was rejected in favour of the assessee.

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Issues: Whether enhancement of the assessable value and consequent duty liability could be sustained without confronting the importer with the market enquiry material and affording an opportunity of hearing.

Analysis: The Tribunal had found that the market enquiry report was not available for perusal and that the assessable value had been enhanced merely on the basis of the importer's statement, without adherence to the requirements of natural justice. The challenge to those findings was rejected, as no merit was found in the contention that the adjudication had been vitiated by non-confrontation of the market record or denial of hearing.

Conclusion: The enhancement could not be interfered with on the ground urged, and the appeal was rejected in favour of the assessee.

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