Customs valuation requires written acceptance or a speaking order before enhanced reassessment can survive

Enhanced reassessment of a Bill of Entry cannot stand unless the importer's written acceptance is recorded or the proper officer issues a speaking order within fifteen days under section 17(5) of the Customs Act. Mere payment of duty for clearance does not, by itself, prove voluntary acceptance of the higher value. On valuation, arbitrary value loading is impermissible; transaction value remains the basis unless rejected under the prescribed procedure in Rule 12 of the Customs Valuation Rules, and any re-determination must follow the sequential valuation method. The reassessment was therefore without authority of law and was set aside.

---

---

Issues: Whether the re-assessment of the Bill of Entry by enhancing the declared value could be sustained when no written acceptance of the enhanced assessment was recorded and no speaking order was issued, and whether value loading was permissible under the valuation law.

Analysis: The enhanced assessment was not shown to have been accepted in writing by the importer. In the absence of such written acceptance, section 17(5) of the Customs Act, 1962 required the proper officer to pass a speaking order within fifteen days, which was not done. Mere payment of duty for clearance could not by itself justify an inference of voluntary acceptance of the enhanced value. On merits also, the valuation law does not recognise arbitrary loading of value by the assessing authority. Transaction value remains the basis unless rejected under the prescribed procedure under Rule 12 of the Customs Valuation Rules, and any re-determination must follow the sequential method under the valuation rules.

Conclusion: The re-assessment was without authority of law and could not be sustained. The appeal succeeded and the impugned order and re-assessment were set aside.

---