2001 (2) TMI 443 - AT - Central Excise

CEGAT Remands Tanzanian Cloves Assessment Case, Deputy Collector's Decision Overturned

The Appellate Tribunal CEGAT remanded a case involving the assessment of Tanzanian cloves imported by the respondent. The Deputy Collector had increased ... Valuation for assessment - enhancement of declared import value based on contemporaneous imports - requirement to record and furnish basis for valuation adjustments - remand for fresh decision where procedural basis is not recorded - effect of importer\'s consent to proposed enhancementEnhancement of declared import value based on contemporaneous imports - requirement to record and furnish basis for valuation adjustments - effect of importer\'s consent to proposed enhancement - Validity of enhancing the declared value of imported cloves to the level of contemporaneous imports when the Deputy Collector did not furnish details of those contemporaneous imports, but the importer had orally agreed to the enhancement. - HELD THAT: - The Tribunal noted that the Deputy Collector did not set out in his order the details of contemporaneous imports upon which the proposed enhancement was based. Although the importer had, according to the record, orally accepted the proposed enhancement, the absence of recorded particulars justifying the higher value meant that when the enhancement was later questioned, it was appropriate to have the factual and procedural basis properly documented. The Tribunal held that in these circumstances it was not unreasonable for the Deputy Collector initially to proceed after the importer\'s apparent acceptance, but, since the enhancement was subsequently disputed, the proper course is to remit the matter to the Deputy Commissioner to pass fresh orders that incorporate and disclose the basis for the enhancement and thereby decide the valuation in accordance with law. [Paras 3, 4]Allow appeal, set aside the Commissioner (Appeals) order, and remit the matter to the Deputy Commissioner to pass fresh orders recording and applying the basis for enhancement of value in accordance with law.Final Conclusion: The appeal is allowed; the Commissioner (Appeals) order is set aside and the matter is remanded to the Deputy Commissioner for fresh adjudication on value with explicit recording of the basis for any enhancement. The Appellate Tribunal CEGAT, Mumbai considered the value for assessment of cloves of Tanzanian origin imported by the respondent. The Deputy Collector enhanced the value to US $ 850 per tonne without providing details of the basis for enhancement. The Commissioner (Appeals) set aside the enhancement due to lack of justification. The tribunal remanded the matter to the Deputy Commissioner to pass orders with proper basis for the enhancement. The appeal was allowed, and the impugned order was set aside.