Successful Appeal Against Loading Value on Imported Goods Beyond Prescribed Period

The appeal by M/s Aakash Stone Industries Ltd challenging the loading of value on imported goods beyond the prescribed period under the Customs Valuation Rules was successful. The Tribunal set aside the impugned order upholding the loading of value, as the market survey leading to the revision was conducted after the prescribed time limit. The decision emphasized the necessity of following the specified procedures and timelines under the Customs Valuation Rules for determining the value of imported goods through market enquiries.

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Issues:
Challenge to loading of value on imported goods based on market enquiry beyond prescribed period under Customs Valuation Rules.

Analysis:
The appeal pertains to M/s Aakash Stone Industries Ltd challenging the upholding of loading of value on imported 'polished small size cutter marble slabs' by US $ 2 per square meter instead of the declared value of US $ 11 per square meter. The loading of value was based on a market enquiry conducted beyond the prescribed period of six months under rule 7 of the Customs Valuation Rules. The impugned order confirmed the revision of value under rule 7(2) of the Customs Valuation Rules, 1988, but the learned counsel for the appellant argued that the market enquiry leading to the revision was carried out on a date exceeding the prescribed time limit.

The Learned Authorised Representative contended that the importers themselves had provided a market price higher than the revised price determined through the market enquiry. The imports in question were made in 2002, and a differential duty of &8377; 18,50,556/- was imposed based on a market survey conducted after the prescribed period under the Customs Valuation Rules. The Tribunal noted that the enhancement of value did not comply with the legal requirements, as the market survey was conducted on a date not in conformity with the rules. Consequently, the impugned order upholding the loading of value was set aside, and the appeal by M/s Aakash Stone Industries Ltd was allowed.

The judgment was pronounced in court on 30/07/2018 by Shri C J Mathew, Member (Technical), of the Appellate Tribunal CESTAT Mumbai. The decision highlights the importance of adhering to the prescribed procedures and timelines under the Customs Valuation Rules while determining the value of imported goods based on market enquiries.

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