Assessable value enhancement fails where material evidence is ignored and findings rest on a ground beyond the show cause notice.

Enhancement of the assessable value, confiscation of imported goods, and imposition of redemption fine and penalty were unsustainable where the adjudicating authority failed to consider material produced in support of the declared value, including a supplier's clarificatory letter. The additional finding on freight also could not stand because it rested on a ground not covered by the show cause notice. The order was set aside and the matter remanded for fresh adjudication after hearing the appellant and considering the evidence.

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Issues: Whether the order enhancing the assessable value, confiscating the goods and imposing redemption fine and penalty could be sustained when the supporting evidence was not considered and one of the grounds relied on was beyond the show cause notice.

Analysis: The challenge centred on the valuation adopted for imported goods and the consequent confiscation, redemption fine and penalty under the Customs Act, 1962. The record showed that the appellant had produced material, including a clarificatory letter from the supplier, to support the declared value. That evidence was not dealt with in the impugned order. The additional finding relating to freight was also not part of the show cause notice, and a finding based on a ground not put to notice could not be sustained.

Conclusion: The order suffered from non-consideration of relevant evidence and from reliance on a ground beyond the show cause notice. It was set aside and the matter was remanded for fresh adjudication after hearing the appellant and considering the evidence.

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