2023 (5) TMI 262 - AT - Customs

Tribunal upholds reassessment of assessable value for Polyester Knitted Fabric

KUMAR IMPEX Versus C.C. -JAMNAGAR (PREV)

The Tribunal dismissed the appeal filed by M/s. Kumar Impex regarding the redetermination of the assessable value for imported 'Polyester Knitted Fabric.' ... Redetermination of the assessable value of the goods imported - Polyester Knitted Fabric - Rejection of declared value - accepting the lowest of the contemporaneous import value of identically described goods - HELD THAT:- In the instant case it is seen that the proceeding subsection 17(4) have culminated into the OIO dated 08.03.21. It is seen that before this order which is a speaking order the appellant has been provided opportunity of personal hearing. The NIDB data based on which re-assessment was done has been provided to the appellant. In this circumstances, the objections raised by the appellant do not hold ground. The decision in the case of SIGMA POWER PRODUCTS PVT. LTD. VERSUS THE COMMISSIONER OF CUSTOMS (PORT) & OTHERS [2017 (3) TMI 497 - CALCUTTA HIGH COURT] relied by the appellant is of no avail as in the instant case the re-assessment itself was done by a speaking order. In the instant case it is seen that all the doubts raised by the revenue were communicated to the appellant before the final decision was taken. The requirement of Rule, 12(2) of the CVR, 2007 is satisfied in the instant case. Moreover, there is no record of any request be made by the appellant for intimation in writing of ground of doubting the truth or accuracy of the value declared by the appellant. It is also noticed that the products has been described as Polyester Knitted Fabrics in all these entries. The quantity imported by the appellant is 21540 kgs. and the quantity imported against bill of entries No. 2198984 dated 1.01.2021 and 2198928 dated 01.01.2021 is 23905 kg. and 24265 kg., is comparable. All the imports were made from China. In this background, we find that the imports are comparable in all respects. There are no error in the impugned order rejecting the declared value and accepting the lowest of the contemporaneous import value of identically described goods falling under the identical heading imported at roughly the same time - appeal dismissed. Issues Involved:1. Redetermination of Assessable Value2. Justification for Low Declared Value3. Procedural Compliance and Opportunity for Personal Hearing4. Rejection of Declared Value Based on Contemporaneous ImportsSummary:1. Redetermination of Assessable Value:This appeal was filed by M/s. Kumar Impex against the redetermination of the assessable value for imported 'Polyester Knitted Fabric' under Bill of Entry No. 2720081 dated 11.02.2021. The declared rate was USD 1.2 per kg for 21,540 kgs, totaling USD 25,848 (INR 1,907,582).2. Justification for Low Declared Value:The appellant was queried twice via the EDI module for reasons behind the unusually low price. The Appraising Officer compared the declared value with contemporaneous imports, noting significant discrepancies. The appellant argued that smaller quantities in other imports justified the lower price and requested reasons for rejection under Rule 12 of CVR 2007, along with evidence for re-determination.3. Procedural Compliance and Opportunity for Personal Hearing:The appellant was given multiple opportunities to justify the declared value, including a personal hearing. The appellant requested specific information and evidence for the re-determination of value, which was provided via NIDB data. The appellant attended the personal hearing, and the reassessment was conducted following procedural norms.4. Rejection of Declared Value Based on Contemporaneous Imports:The declared value was significantly lower than contemporaneous imports of similar goods from China, which ranged from USD 2.1 to USD 2.85 per kg. The assessing officer applied Rule 4(3) CVR, 2007, and re-assessed the value at USD 2.1 per kg. The appellant's objections, including the need for a speaking order and the provision of actual bills of entry and invoices, were addressed. The Tribunal found no procedural lapses and upheld the reassessment, rejecting the declared value and accepting the lowest contemporaneous import value.Conclusion:The Tribunal dismissed the appeal, affirming the reassessment of the declared value based on contemporaneous imports and procedural compliance by the assessing officer. The order was pronounced in the open court on 03.05.2023.