TaxTMI 
TaxTMI 
2023 (8) TMI 1245
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....f ceramic tiles and consequently the consignments were provisionally assessed by taking the price as USD 10 per sq.m. Thus the bills of entry were assessed provisionally pending verification of the declared values by taking bond and bank guarantee from the appellant. Later based on the letter received from the Directorate General of Valuation, Mumbai dated 19.03.2008, wherein it was intimated to finalise the provisional assessment by taking the contemporaneous value, prevalent during the period of importation of the goods, the adjudicating authority finalised the provisional assessments. The value of the goods imported from Malaysia was enhanced under Rule 8 of the Customs Valuation Rules 1988 read with section 14 of the Customs....
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....ls of entry the Commissioner (Appeals) upheld the finalisation of assessment passed by the original authority enhancing the declared value. Aggrieved by such order the appellant is once again before the Tribunal. 2. The learned counsel Shri Hari Radhakrishnan appeared and argued on behalf of the appellant. The details of the bills of entry filed by the appellant for import of polished porcelain tiles and the value enhanced by original authority are given as under. Sl.No. Bill of Entry No. & Date Country of Origin Size Declared Unit Price in USD Assessed Unit Price in USD 1. 374465/21.01.2002 China 600x600 ....
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....nt to reject the transaction value. Para 5 of the order in original was adverted to by the Ld. counsel to argue that the assessments have been finalized by taking the NIDB data into consideration. Commissioner (Appeals) has noted in para 6 that after perusal of NIDB data the declared values were found to be lower than the contemporaneous imports of such goods. The details of higher price noted as per the NIDB data is given in the said paragraph. In para 9, the original authority has noted that Rule 5 of the Customs Valuation Rules Act 1988, which is applicable for identical goods is not adoptable on the basis of the NIDB data as the goods imported cannot said to be identical since the manufacturer of thes....
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....e to the importer in writing as to the reasons for doubting the truth and accuracy of value declared. The said mandate of sub Rule (2) of Rule 12 cannot be ignored or waived. Formation of opinion regarding reasonable doubt as to the truth or accuracy of the valuation and communication of the said grounds to the importer is mandatory. It is argued by the Ld. Counsel that no reasons are intimated to the appellant by way of issuance of Show Cause Notice or by stating in the order in original as to the basis for doubting the transaction value and rejecting the same. 6. The Ld. Counsel asserted that the enhancement of value without giving reasons to reject the transaction value is erroneous and illegal. Further, ....
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....f Rule 9 of these rules. (2) The transaction value of imported goods under sub-rule (1) above shall be accepted: Provided that- ^2[(a) the sale is in the ordinary course of trade under fully competitive conditions; (b) the sale does nto involve any abnormal discount or reduction from the ordinary competitive price; (c) the sale does not involve special discouts limited to exclusive agents; (d) objective and quantifiable data exist with regard to the adjustments required to be made, under the provisions of rule 9, to the transaction value;] ^2[(e) there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which - (i) are impo....
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....oods or similar goods; ^3[(iii) the computed value for identical goods or similar goods.] Provided that in applying the values used for comparison, due account shall be taken of demonstrated difference in commercial levels, quantity levels, adjustments in accordance with the provisions of Rule 9 of these rules and cost incurred by the seller in sales in which he and the buyer are not related; (c) substitute value shall not be established under the provisions of clause (b) of this sub-rule. 10. Rule 10A provides for situations in which the transaction value declared value can be rejected. It says that if the proper Officer has reasons to doubt the truth or accuracy of the value declared by importer, ....