Tribunal overturns Collector's order due to valuation challenge eligibility, emphasizing actual selling prices in international trade.

The Tribunal allowed the appeal, setting aside the Collector's order, as the appellants were not barred from challenging the valuation. The decision stressed the need to assess value based on actual selling prices in international trade, rejecting reliance on telex offers without evidence of corresponding imports.

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Issues involved: Dispute regarding valuation of imported color printing machine and automatic film developing machine.

Valuation Dispute: The appellants imported machines and declared value at Rs. 2,78,792 under OGL. The Collector enhanced the value based on a telex offer, but the appellants argued that the telex was only an offer and not the actual price. They highlighted differences in models and lack of evidence of actual import in pursuance of the telex. The Tribunal rejected the telex as a basis for value enhancement due to model differences and timing discrepancies.

Acceptance of Value: The Collector claimed the appellants accepted the escalated value, but the appellants disputed this claim with letters stating they were not insisting on document inspection and were unaware of reasons for proposed value enhancement. The Tribunal noted that even if there was acceptance, it did not prevent challenging the value under Section 14(1) of the Customs Act. They referenced a Supreme Court judgment to support the appellants' right to challenge valuation despite any prior acceptance.

Conclusion: The Tribunal allowed the appeal, setting aside the Collector's order, as they found the appellants were not barred from challenging the valuation. The decision emphasized the importance of assessing value based on actual selling prices in international trade, rejecting reliance on telex offers without evidence of corresponding imports.

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