2017 (6) TMI 990

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....al Invoice No.54890 dt. 20.1.2005 (2) copy of Packing List and (3) copy of Bill of Lading 21.1.2005. During the course of assessment, it was felt that the value declared by the importer for Sony and Pioneer brand CD players and speakers was very low in comparison with the contemporaneous imports. Accordingly, the Bill of Entry was taken up for further investigation by the SIIB. As part of the investigation, the customs authorities obtained the following relevant data : (1) The imports of Car Cassette/ CD players by M/s.Sony India Pvt. Ltd. were obtained and the prices declared in the present import were compared. (2) The department obtained the price list of 'Sony'. A comparison of unit price declared by the imp....

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.... in Singapore on the basis of purchase order dt. 12.01.2005. The purchase order/packing list as well as the export invoices tally perfectly with the Bill of Entry and a subsequent examination report of Customs authorities. As such no misdeclaration can be alleged against the importer. He further argued that the basis adopted by the Customs authorities for disregarding the value has no sanction in law. The evidences produced by Customs has been used to sustain the allegation of undervaluation in the form of price list, catalogue and market enquiry reports for Sony and Pioneer brands. There is no sanction in the Customs Valuation Rules to determine the value on the basis of such evidences. It is settled position of law that the Customs author....

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....oms authorities have arrived at the value of the imported goods by deduction method from the market price. It is settled position of law that in terms of Section 14 of the Customs Act, 1962, the transaction value is required to be accepted as above. The value can be determined by resorting to Customs Valuation Rules only in those cases when the transaction value is rejected for valid reasons. Only thereafter, the value shall be determined by proceeding sequentially through Valuation Rules. In the present case, the transaction value has been sought to be rejected only on the basis of the price list, catalogue, market enquiry as well as contemporaneous import of some of the items. All these grounds can at best raise a suspicion that value dec....