Customs valuation enhancement fails without a speaking order; importer's challenge to declared value was upheld.

An importer may challenge enhancement of the assessable value of imported goods where no speaking order is on record. The Tribunal noted that acceptance of the enhanced price could not bar the challenge if the assessment was not supported by a reasoned order. In the absence of a speaking order under Section 17(5) of the Customs Act, 1962, the enhancement of value was held unsustainable, the declared value was accepted, and the impugned orders were set aside with consequential relief.

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Issues: Whether the importer could challenge enhancement of the assessable value of the imported goods in the absence of a speaking order, and whether the declared value in the Bills of Entry was liable to be accepted.

Analysis: The Tribunal noted that the Commissioner (Appeals) had rejected the challenge on the footing that the importer had accepted the enhanced price. It relied on the later view that an importer is entitled to challenge an enhancement made without a speaking order. As no speaking order was available on record under Section 17(5) of the Customs Act, 1962, the enhancement of value was held not sustainable.

Conclusion: The importer's challenge was maintainable, the enhanced valuation was not upheld, and the declared value was accepted.

Final Conclusion: The impugned orders were set aside and the appeals succeeded with consequential relief.

Ratio Decidendi: An enhancement of the assessable value of imported goods cannot be sustained in the absence of a speaking order, and the importer retains the right to challenge such assessment.

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