2015 (8) TMI 384 - SCH - Customs

Supreme Court Upholds Decision on Currency Devaluation Impacting Customs Valuation

The Supreme Court dismissed the appeal, upholding the lower court's decision based on the respondent's explanation of currency devaluation affecting the ... Valuation – Transaction value – Confiscation of goods – Tribunal in case of KANHAIYALAL & CO. Versus COMMISSIONER OF CUSTOMS [2003 (8) TMI 423 - CESTAT, MUMBAI] allowed appeal of assesse against enhancement of declared value from US $900 to US $1200 (CIF) – Supreme court considered that there was huge devaluation in foreign exchange, i.e., Lira of Turkey in comparison to foreign exchange, viz., US dollar, and this devaluation was more than 100 per cent – This impacted price at which goods were imported by respondent – Therefore no interfere with orders passed by CESTAT was required. The Supreme Court dismissed the appeal, citing the respondent's justification of significant devaluation in the foreign exchange (Lira of Turkey vs. US dollar) as impacting the imported goods' price declaration. The Bill of Entry was cleared at US dollars 900 per metric tonne, while customs authorities valued it at US dollars 1200 per metric tonne. The Court upheld the CESTAT's orders based on this justification.