TaxTMI 
TaxTMI 
2008 (4) TMI 436
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....upplier's (Robert Bosch GMBH Germany) invoice no. W47408 dated 7th June 2001. Accordingly, on the declared assessable value of Rs. 40,88,835/- in CIF terms (based on the invoice value) assessment was sought by the assessee under Heading 8460.40 @ 25% basic customs duty with CVD @ 16% (8460.00) and SAD 4%. 2. The authority-in-original, viz., the Dy. Commissioner of Customs, rejected the declared value/transaction value by observing thus: "…….. Hence the foremost requirement for accepting the transaction value/invoice price under Section 4(1) that it should be the price at which such or like goods are ordinarily sold or offered for sale, is not fulfilled in this case." 3. The authority-in-original then proceeded to examine the ap....
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....e under Rule 4 by ab initio application of Rule 8, that would be putting the cart before the horse. The principle involved that the 'actual' cannot be superseded by the 'deemed', unless the 'actual first rejected in terms of Section 14 read with Rule 4 ibid." The Commissioner thus held that the question of rejection of the transaction value and determining the value under any of the rules subsequent to Rule 4 will not arise at all. 5. Aggrieved by the aforesaid order of the appellate authority, the Department went in appeal before the Customs, Excise and Gold (Control) Appellate Tribunal (for short, 'the Tribunal'). The Member (Judicial) by his order dated 29th July 2002 rejected the appeal filed by the Revenue and Member (Technical) by ....
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....ethod valuation, clause (i) whereof provides that the value of imported goods shall be the transaction value. Clause (ii) thereof provides that if the value can not be determined under the provisions of clause (i), the value shall be determined by proceedings sequentially through Rules 5 to 8 of the Rules. 9. Rule 4 provides that the transaction value of imported goods shall be the price actually paid or payable for the goods when sold for export to India, adjusted in accordance with the provision of Rule 9 of these rules. As per sub-rule (2) of the said Rule the transaction value of imported goods under sub-rule (1) shall be accepted subject to the exceptions provided therein. 10. Admittedly Rule 9 of the Rules is not applicable to t....
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.... has to give cogent reasons for such rejection. This is because the invoice price forms the basis of the transaction value. Therefore, before rejecting the transaction value as incorrect or unacceptable, the department has to find out whether there are any imports of identical goods or similar goods at a higher price at around the same time. Unless the evidence is gathered in that regard, the question of importing Section 14(1A) does not arise. In the absence of such evidence, invoice price has to be accepted as the transaction value. Invoice is the evidence of value. Casting suspicion on invoice produced by the importer is not sufficient to reject it as evidence of value of imported goods. Undervaluation has to be proved. If the charge of ....