2001 (1) TMI 450 - AT - Customs

CEGAT Remands Customs Case for Reevaluation of Imported Car Value

The Appellate Tribunal CEGAT remanded the case back to the Commissioner of Customs House for reevaluation of the assessable value of an imported car, ... Determination of assessable value - customs valuation based on domestic price of exporting country - contemporary evidence for valuation - redemption fine under Section 125 of the Customs Act - market value for fixation of redemption fine - remand for de novo considerationDetermination of assessable value - customs valuation based on domestic price of exporting country - contemporary evidence for valuation - Assessable value of the imported Cruiser Jeep as determined by the Commissioner - HELD THAT: - The Tribunal held that the Commissioner was not correct in determining the assessable value of the imported car by adopting the prevailing domestic price in Japan. The Court recorded that contemporary evidence relevant to the transaction must be placed on the record when fixing the assessable value, and that reliance on domestic prices in the exporting country, without appropriate evidentiary basis or application of the valuation rules, was erroneous. In view of these defects in the valuation exercise, the matter was not finally decided on merits but required fresh adjudication by the jurisdictional Commissioner with opportunity to the party to adduce and rely upon relevant evidence. [Paras 4]The assessment of value was set aside and remanded to the Commissioner for de novo consideration with direction to consider contemporary evidence and applicable valuation principles.Redemption fine under Section 125 of the Customs Act - market value for fixation of redemption fine - remand for de novo consideration - Validity of the redemption fine imposed under Section 125 of the Customs Act without reference to market value - HELD THAT: - The Tribunal found that the Commissioner erred in fixing the redemption fine without taking into account the market value as envisaged by Section 125. The absence of consideration of market value rendered the imposition of the fine legally unsustainable. Consequently, the Tribunal remanded this aspect as well for fresh consideration by the Commissioner, directing that the party be given an opportunity to raise all connected pleas and to substantiate claims during readjudication. [Paras 4, 5]The imposition of the redemption fine was set aside for de novo consideration by the Commissioner, who must consider market value and afford the party an opportunity to be heard.Final Conclusion: Appeal allowed by way of remand: both the assessable value determination and the fixation of the redemption fine are set aside and the matter is remitted to the jurisdictional Commissioner for fresh adjudication in accordance with law after affording the party an opportunity to present evidence and raise all connected pleas. The Appellate Tribunal CEGAT, Bangalore remanded a case back to the Commissioner of Customs House, Cochin for reevaluation of the assessable value of an imported car, as the original determination based on prevailing domestic price in Japan was deemed incorrect. The Tribunal directed the Commissioner to consider contemporary evidence and market value in accordance with the Customs Act, allowing the party to raise all connected pleas during the reevaluation proceedings. The appeal was allowed by way of remand.