TaxTMI 
TaxTMI 
2024 (4) TMI 246
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....t' dated 10th July 2012 between M/s Speciality Minerals (SM-Michigan) and themselves, paid or payable to assessable value of imported goods under the empowerment of rule 10(1)(c) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 with the direction that '7..... the exact quantum of addition of royalty in the value of the imported goods shall be calculated by the original authority concerned. The respondent for the purpose of this calculation shall cooperate with the original authority and provide the necessary documents/records for proper quantification...' in order of Commissioner of Customs (Appeals), Mumbai Zone-I which is impugned here. 2. We have heard Learned Counsel and Learned Authorized Representative a....
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.... to import, calls into question the authority for such enhancement and, that too, under a provision which has nothing to do with relationship of the two parties to the agreement. 4. This curious concoction of layered thinking in appellate proceedings is so bizarre as to prompt delving into the jurisdiction that legally permitted it to do so. We find that the order impugned before the first appellate authority has its origins in a peculiar institution of customs administration, viz., Special Valuation Branch (SVB) or GATT Valuation Cell (GVC), found in some of the older customs houses with specific remit to ascertain valuation of goods transacted between related persons. This arises from a provisioning in section 14 of Customs Act, 1962 for....
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....versight are, invariably, kept provisional for finalization to be undertaken upon completion of ascertainment by Special Valuation Branch (SVB). Therefore, at this stage, the quantification ordered by the first appellate authority pertains to finalization under section 18 of Customs Act, 1962 devolving on 'proper officer' that Deputy Commissioner, Special Valuation Branch (SVB) is not. As appeal has not been directed before first appellate authority against order of such 'proper officer', it transgresses the remand jurisdiction of such appellate authority to issue directions to 'proper officer' who has yet to complete the process of finalization. Direction to the ostensible 'original authority' is an exercise in futility and direction to th....