Customs valuation of free-supplied platinum sponge upheld; de novo assessment and freight treatment sustained

De novo finalisation of provisional customs assessment was upheld where the adjudicating authority valued platinum sponge supplied free of cost as part of the imported catalyst consignment and corrected the freight and insurance treatment in the working. The valuation method for determining the quantity and value of platinum under each bill of entry was recorded in the order, and no specific error or factual basis was shown to disturb that exercise. The departmental challenge therefore failed, and the assessment valuation was sustained.

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Issues: Whether the de novo finalisation of assessment, including the valuation of platinum sponge supplied free of cost and the exclusion of freight and insurance elements, was correct.

Analysis: The dispute concerned finalisation of provisional assessments of imported catalyst consignment covered by bills of entry, where the imported goods were linked to spent catalyst exported by the importer and platinum sponge was retrieved by the foreign supplier and supplied back in the active catalyst without separate charge. The assessment had to account for the value of the free of cost material in terms of the customs valuation framework. The record showed that the earlier loading of freight to each export had been corrected in the de novo order, and the original authority had set out the method of arriving at the quantity and value of platinum for each bill of entry. The appeal did not identify any specific error in the valuation exercise or any factual basis to disturb the working adopted by the adjudicating authority.

Conclusion: The valuation adopted for finalisation of assessment was upheld and the departmental challenge failed.

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