Rejection of declared transaction value and consequent...

Rejection of declared transaction value and consequent confiscation/penalty for alleged mis-declaration/undervaluation were held unsustainable because the department failed to discharge the burden under Section 14 and the Valuation Rules: no contemporaneous comparable import data was cited, no valid grounds under Rule 4(2) were recorded for doubting the declared value, and no evidence showed extra-remittances beyond invoice value; reliance on domestic raw-material averages was impermissible. Accordingly, enhancement of value and action under Sections 111(m) and 112 were set aside. The adjudication was also vitiated for breach of natural justice due to non-issuance/absence of confrontation with valuation material and failure to adhere to statutory timelines post-seizure, rendering the order invalid; appeal allowed. - CESTAT