2019 (7) TMI 2066 - AT - Customs

Enhancement of imported goods' value under Rule 9 and Section 14 unsustainable without rejecting declared transaction value first

CESTAT All held that enhancement of imported goods' value under Rule 9 and s.14 is unsustainable because Revenue failed to first reject the transaction ... Enhancement of value of imported goods - adoption of Rule 9 of the Customs Valuation (Determination of Value of imported goods) Rules, 2007 - enhancement of value primarily based on NIDB data - HELD THAT:- It is found that for enhancing the value of the imported goods, Revenue is under an obligation to first reject the transaction value by production of evidences to the contrary. The said issue was considered by the Tribunal in the case of Sanjivani Non-Ferrous Trading Pvt. Ltd. V/s Commissioner [2017 (3) TMI 359 - CESTAT ALLAHABAD] which stands upheld by the Hon’ble Supreme Court when the appeal filed by the Commissioner was rejected. The Hon’ble Supreme Court in the case of Commissioner of Central Excise & Service Tax, Noida V/s Sanjivani Non-Ferrous Trading Pvt. Ltd. [2018 (12) TMI 664 - SC ORDER] held that unless the value declared by the appellant is not rejected by the Revenue the same cannot be enhanced in terms of the Section 14 of the Customs Act, 1962. There is no evidence produced by the Revenue rejecting the transaction value. Otherwise also, it is noted that NIDB data has been held as non-reliable, for the purpose of enhancement of value of imported goods, by various decisions. It is found that enhancement of the value of the goods as unsustainable - appeal allowed. Appellant imported aluminum scrap declared at a transaction value that lower authorities enhanced under Rule 9 of the Customs Valuation Rules, 2007. Enhancement was upheld below on NIDB data and for alleged inability to justify the declared value. Tribunal holds that for enhancement the Revenue must first 'reject the transaction value by production of evidences to the contrary.' Citing Sanjivani Non-Ferrous Trading Pvt. Ltd., upheld by the Supreme Court, the Tribunal notes the Supreme Court's holding that 'unless the value declared by the appellant is not rejected by the Revenue the same cannot be enhanced in terms of the Section 14 of the Customs Act, 1962.' No evidence was produced rejecting the transaction value here. The Tribunal further observes that NIDB data has been held non-reliable for value enhancement in various decisions. Accordingly, enhancement of value is found unsustainable, set aside, and appeals allowed with consequential relief to the appellant.