2023 (6) TMI 599 - AT - Customs

Tribunal sets aside order, grants appeal, and remands for proper officer's decision.

The Tribunal set aside the impugned order, allowing the appeal and remanding the case to the proper officer for the passing of a speaking order in ... Valuation of imported goods - LED lights - Value declared in the bill of entry rejected - case of Revenue is that declared value of goods was very much in the lower side, in comparison to the contemporaneous import prices - no speaking order was passed as per the provisions of sub-section (5) of Section 17 of the Customs Act, 1962 - violation of principles of natural justice - HELD THAT:- It is evident that since the declared value was enhanced by the department by way of re-assessment, the mandatory requirement of passing of speaking order as per sub-section (5) of Section 17 ibid has not been complied with. In view of the fact that the value has been enhanced by the department, which is contrary to the declaration made by the appellant, it is opined that the proper officer should pass a speaking order, by complying with the principles of natural justice. The appeal is allowed by way of remand to the proper officer for passing of speaking order in terms of Section 17(5) of the Customs Act, 1962. Issues involved:The issues involved in the judgment are the rejection of the value declared in the bill of entry dated 18.02.2021 and the failure to pass a speaking order as per the provisions of sub-section (5) of Section 17 of the Customs Act, 1962.Issue 1: Rejection of the declared value in the bill of entryThe appellant imported LED lights and filed the warehousing bill of entry dated 18.02.2020. The proper officer found the declared value to be lower compared to contemporaneous import prices. The appellant, in response to a query memo, requested to load the value as per GRP Practice. However, no speaking order was passed as the appellant was deemed to have forgone the right to contest the valuation. The appellant later contended that the CHA had requested the customs authority to load the value without informing them. The appellant specifically requested a speaking order in relation to the enhancement of value, which was not complied with. The Tribunal found that the enhancement of value by the department, contrary to the appellant's declaration, necessitated the proper officer to pass a speaking order in compliance with the principles of natural justice.Issue 2: Failure to pass a speaking orderThe Tribunal set aside the impugned order and allowed the appeal by remanding it to the proper officer for the passing of a speaking order in accordance with Section 17(5) of the Customs Act, 1962. It was emphasized that the appellant should be granted a reasonable opportunity for a personal hearing before a fresh decision is made. The order was pronounced in the open court on 11.05.2023 by the Tribunal.