TaxTMI 
TaxTMI 
2025 (5) TMI 1933
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....2014 CUSTOMS APPEAL NO. 53988 OF 2014 CUSTOMS APPEAL NO. 53989 OF 2014 CUSTOMS APPEAL NO. 54552 OF 2014 - FINAL ORDER NO’S. 50786-50791 / 2025<br>Customs<br>HON'BLE JUSTICE MR. DILIP GUPTA, PRESIDENT And HON'BLE MR. P.V. SUBBA RAO, MEMBER ( TECHNICAL ) Shri B. L. Narasimhan, Shri Ashwani Bhatia and Ms. Anjali Gupta, Advocates for the appellants Shri Rajesh Singh, Authorized Representative for the Department ORDER P. V. SUBBA RAO The order-in-original dated 30.04.2014 passed by the Commissioner of Customs (Preventive), New Delhi impugned order is assailed by M/s Delphi Automotive Systems Pvt. Ltd., Shri Nirdesh Karnawat, Shri Kulbhushan Malik, Shri Prashanth Kumar Nath, Shri Naresh Gambhir and Shri M.S. Bedi in these appeals. By the i....
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.... is not relevant to these cases. The Customs Valuation (Determination of Value of Imported Goods), 2007 Valuation Rules were formulated as per section 14 of the Act. Rule 3 of the Valuation Rules provides for the assessment to be done as per the transaction value adjusted in accordance with Rule 10 of the Valuation Rules. Rule 10 provides for certain costs and services to be included in the transaction value. In other words, if these elements are not already part of the transaction value, they should be added to determine the assessable value. Sub-rule (2) of Rule 10 provides that the cost of transport for the imported goods upto the place of importation and the cost of transit insurance should be added. In other words, if the transaction v....
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.... the cost of transport up to the port of import and transit insurance were added to it and the assessable value was determined. The Bills of Entry so filed by the appellants were assessed by officers accordingly. In all these Bills of Entry, the goods were transported by air and not by ship. Therefore, the assessable value was determined by considering only 20% of the invoice value (ex-works) as the cost of transportation to be added to the assessable value when actually 20% of the FOB value i.e. the invoice value on ex-works basis + the cost of local transport up to the place of export should have been added to arrive at FOB value. The Bills of entry should have been filed accordingly. Had they been filed in this manner, the cost of air tr....
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....ing the Bills of Entry provided for only declaration of FOB value or CIF value, but not ex-works value cannot be accepted. The appellant should have either added the cost of local transport to the invoice value and shown that amount as the FOB value or they should have added local transport as 'other charges'. Learned authorized representative further submits that transactions on ex-works basis are common and in all such cases the importers add the cost of local transport as other charges. Had that been done this evasion of duty would not have taken place. 9. According to the learned Authorized Representative, insofar as the wilful mis-statement is concerned it can only be deduced from the facts of the case. It is evident that the appellan....