2018 (6) TMI 715 - AT - Customs

Imported Goods Valuation: Precedents Trump NIDB Data in CESTAT Decision

The Tribunal overturned the Commissioner (Appeals)'s decision to enhance the declared value of imported knitted fabric based on NIDB data, ruling that ... Valuation of imported goods - knitted fabric (100% knitted polyester) - knitted fabric (97% Rayon and 3% Spandex) - enhancement of value based on contemporaneous NIDB data - Held that:- It is well settled that NIDB data cannot be used to enhance the value of imported goods in number of decisions - reliance placed in the case of M/S. SARDA ENERGY AND MINERALS LTD. VERSUS CCE, RAIPUR [2017 (9) TMI 1142 - CESTAT NEW DELHI] - appeal allowed - decided in favor of appellant. Issues: Appeal against order enhancing declared value of imported goods based on NIDB data.Analysis:1. Assessable value of knitted fabric: The dispute in the appeals pertained to the assessable value of knitted fabric imported by the appellant in multiple consignments. The customs authorities had increased the declared value based on contemporaneous NIDB data. The Commissioner (Appeals) upheld this enhancement in a common order. The appellants challenged this decision before the Tribunal.2. Use of NIDB data: During the hearing, the appellant's counsel argued that enhancing the declared value based on NIDB data was improper, citing several Tribunal decisions supporting this position. The counsel highlighted that NIDB data cannot be used to increase the value of imported goods, as established in various precedents. In contrast, the Additional Commissioner (AR) supported the impugned order.3. Tribunal's decision: The Tribunal agreed with the appellant's contention that enhancing declared import values using NIDB data was not permissible, as supported by legal precedents. Citing the established principle that NIDB data cannot be utilized for enhancing imported goods' value, the Tribunal set aside the impugned order. Consequently, the appeals were deemed successful, with any consequential relief granted as per the law.This judgment by the Appellate Tribunal CESTAT CHENNAI emphasizes the importance of legal precedents and established principles in determining the assessable value of imported goods, particularly concerning the use of NIDB data for value enhancement. The decision provides clarity on the permissible methods for assessing import values and sets a precedent for similar cases in the future.