Supreme Court Invalidates CEGAT Orders

The Supreme Court set aside the orders of the CEGAT and Customs authorities, ruling that reliance on undisclosed prices and disregarding valid certificates was illegal. The Court quashed the show cause notice and allowed the appeal without costs.

---

---

Issues:
Assessment of customs duty on a used car imported under Transfer of Residence Rules, 1978.

Analysis:
The appellant imported a used Volvo car to India from Dubai under the Transfer of Residence Rules, 1978. The Customs authorities assessed the value of the car at Rs. 53,305.44 and levied duty at 150%, Auxiliary duty at 40%, and Additional duty of Customs, totaling Rs. 1,28,188/-. The appellant paid the duty under protest and later requested a refund of the alleged excess duty paid. A show cause notice was issued by the Superintendent of Customs alleging a short levy of customs duty of Rs. 1,40,174.70, based on a different assessable value. After a delay, an order was issued reworking the assessable value and the duty payable. The appellant appealed, arguing that the assessable value was incorrectly determined, and the additional levy was time-barred. The appeal was dismissed by the Collector (Appeals) and the CEGAT. The appellant contended that the price lists referred to were not disclosed, and the manufacturer's certificate was not accepted. The Supreme Court noted that the price mentioned in the magazine was not part of the show cause notice and that the manufacturer's certificate was ignored without justification. The Court held that reliance on undisclosed prices and disregarding valid certificates was illegal. The Court set aside the orders of the CEGAT and Customs authorities, quashing the show cause notice and allowing the appeal without costs.

---