Appellate Tribunal rules on alignment of declared values with transaction value in imported defective goods case

The Appellate Tribunal CESTAT, Mumbai ruled that values declared on the Bill of Entry must align with transaction value. The imports were for defective/stock lot goods from European countries. The Commissioner (Appeals) rejected the declared value enhancement and the appellants' reliance on Supreme Court decisions was upheld. The appeals were allowed, and the previous order was set aside.

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The Appellate Tribunal CESTAT, Mumbai ruled that values declared on the Bill of Entry must align with transaction value, considering evidence of contemporaneous imports. The imports were for defective/stock lot from European countries, with authorities using prime quality goods for comparison and offering arbitrary discounts. The Commissioner (Appeals) rejected the declared value enhancement agreed upon during a hearing, stating that transaction value can only be departed from based on records and Valuation Rules. The appellants' reliance on Supreme Court decisions in Basant Industries and Eicher Tractors Ltd. was upheld, leading to the appeals being allowed and the previous order set aside.

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