TaxTMI 
TaxTMI 
TaxTMI 
2019 (10) TMI 335
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.... Authority C/1086/2012 ESSFO IMPEX Pvt Ltd 672-679/MC H/JC/ CFS(M) / CH/2012 06.08.12 Commissioner (Appeal) Mumbai C/1087/2012 Rajeev Seth C/1088/2012 S K Dhawan C/1019/2012 ESSDEE Trading Co 435-436/MC H/AC/CFS(M ) (I)/2012 01.08.12 Commissioner (Appeal) Mumbai C/1020/2012 S K Dhawan C/1089/2012 Disha Enterprises 449-451/MC H/JC/CFS(M) (I)/2012 07.08.12 Commissioner (Appeal) Mumbai C/1090/2012 Rajeev Seth C/1091/2012 S K Dhawan C/85724/2013 Narendra Pal Sahdeva C/85848/2013 Decent Overseas 126/2012 27.11.12 Commissioner Customs (Import) Nhava Sheva C/85864/2013 S K Dhawan C/502/2012 Raghav Overseas 17/2011-12/ CAC/CCG/SL M 30.03.12 Commissioner Customs (Gen) Mumbai C/1017/2012 Nitin Overseas 454- 455/MCH/ JC/CFS(M)(I)/2012 07.08.12 Commissioner (Appeal) Mumbai C/1018/2012 Yashwanti Raghav 2.1 As is evident from the table above that these appeals have been filed by six companies and their Proprietor/ Directors/ Partners. Importers i.e. the Companies imported Brass Valve & Zinc Valves from China during the period 2008-09. 2.2 Based o the intelligence the import documents of these companies were scrutinized and it was found that the de....
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....i. In the cases decided by the tribunal earlier same evidences were relied upon by the revenue for rejecting the transaction value and for redetermining the value of imported goods. However tribunal has set aside the demands made along with interest and penalties. iii. Since the issues involved in those appeals and the case under consideration are exactly identical, judicial propriety demand that this bench of tribunal should the said order of tribunal be followed for deciding these appeals. iv. He also relied on the following decisions wherein the manner of rejection of transaction value adopted by the revenue has not been agreed to. * South India Televisions (P) Ltd [2007 (214) ELT 3 (SC)] * Mahalaxmi Gems [2008 (231) ELT 198 (SC)] * Chaudhary Ship Breakers[2010 (259) ELT 16 (SC)] * Sanjivani Non Ferrous Trading Pvt Ltd. [2019 (365) ELT 3 (SC)] v. He relied upon the following decisions wherein it has been held that statements alone cannot be the basis for enhancement of value and other prepositions by application of which the value could not have been enhanced in the manner as has been done in the present proceedings. * Orient Enterprises [1986 (23) ELT 507 (T)] ....
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....the value of the imported consignments inasmuch as the value of the basic raw material was considered for holding the charge of undervaluation based upon the statement given by Shri S.K. Dhawan who stated that valves content 70% of brass and 30% of zinc. It is his submission that the said findings of the adjudicating authority are totally erroneous as there is no test conducted on the goods imported to ascertain whether the Ball valves and Check Valves were having the content of brass and zinc as stated by Shri S.K. Dhawan. It is his further submission that the cost factor cannot be adopted for valuation, when the constituent of the imported consignments are not known; LME price cannot be relied upon as also the tariff value for scrap of brass and zinc cannot be adopted for valuation and on the face of the fact that the percentage of raw materials in the final product is taken arbitrarily. It is his submission that the department did not produce or relied upon any contemporaneous import, while appellants had produced evidences of contemporaneous import but was ignored by the Commissioner and no findings are given. It is his further submission that the findings of misdeclaration of ....
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....s not retracted the statement. It is his further submission that the judgment of the Apex Court in the case of Collector of Customs v. Shibani Engineering Systems - 1996 (86) E.L.T. 453 (S.C.), specifically states the law, if transaction value of the goods imported are ridiculously low, totally unrealistic and the goods are imported from traders and price list of manufacturer are not produced, such transaction value needs to be discarded. 5. We have considered the submissions made at length by both sides and perused the records. 6. We find from the records that the issue involved is regarding the valuation of ball valves and check valves. The imports were made during the material period and the bills of entry were finally assessed. 6.1 The adjudicating authority has rejected the transaction value of the appellant-importer in the impugned orders by recording the finding that he disagree with the transaction value due to following reasons :- (a) That the prices of the brass/zinc valves were less than the LME price of valves and scrap of brass and zinc. (b) Statement recorded of Shri S.K. Dhawan indicated that the said valves had brass content 76% and iron content 24%, ....
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.... the transaction value the least that is expected is to produce any evidence of contemporaneous import of higher value. In the case in hand, it is the submission of appellant-importer they had submitted details of contemporaneous imports of the same goods and the value seems to be more or less is same as declared by the appellant-importer is not addressed to and also surprising to note that the adjudicating authority has not recorded a single sentence of finding on such contemporaneous import detail given by the appellant. 7.3 Thirdly, we find that the adjudicating authority has come to a conclusion that there was undervaluation as the appellant-importer did not produce the manufacturer's invoice nor catalogue. In our view these findings of the adjudicating authority is totally not in consonance with the law, as these consignments were cleared by the same department when the bills of entries were filed and the documents as produced were accepted as correct at that time. If the authorities had entertained any doubt, they should have called for these documents at the time of clearance of the consignments. 7.4 Fourthly, we find that the adjudicating authority has recorded that t....