Service u/s 153 and declared value u/r 9 challenged; tribunal upholds service and re-valuation, appeal dismissed

Whether there was effective service under Section 153, Customs Act: Tribunal found postal returns and subsequent display on the Custom House notice board constituted due compliance with Section 153; appellants' failure to notify address changes and instruction to return postal letters evidenced lack of bona fides - appeal dismissed on this ground. Whether declared value was permissible and valuation under Rule 9, Customs Valuation Rules, 2007: Customs legitimately rejected the declared value and re-determined transaction value under Rule 9; Tribunal upheld the re-valuation and the impugned orders.

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Issues: Whether the appeals against the Orders-in-Original (confiscation, re-determination of value under customs valuation rules, appropriation of amounts and imposition of fines/penalties) are maintainable specifically whether service of the Orders was valid under Section 153 of the Customs Act, 1962 and whether the appellant's conduct/bona fides disentitles him to relief.

Analysis: The appeals concern orders rejecting declared value and imposing confiscation, redemption fine and penalty after valuation under Rule 9 of the Customs Valuation Rules, 2007. The record shows that the Orders-in-Original and detention notices were returned undelivered by postal authorities and thereafter displayed on the Notice Board at the Custom House, Chennai, as reflected in departmental communication; the appellant had attended the personal hearing on 24.01.2011 and filed common written submissions but did not dispute change of address or non-service at that stage. Subsequent conduct alleged by the appellant includes vacating business premises and instructing the owner to return postal covers; the Tribunal found these facts inconsistent with a claim of non-receipt and indicative of lack of bonafides. The Tribunal applied the statutory service mechanism under Section 153 and considered the attendance at hearing and appropriation of deposits in assessing the appellant's entitlement to relief.

Conclusion: The Tribunal concluded that service in accordance with Section 153 was effected by return and display on the Notice Board, the appellant failed to show bonafide non-receipt or to inform authorities of address change, and therefore the appeals lack merit and are dismissed in favour of the Revenue.

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