TaxTMI 
TaxTMI 
2025 (6) TMI 1279
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2. We have heard Learned Counsel and Learned Authorized Representative. It is common ground that the imported goods were intended for free supply during the Commonwealth Games 2010 at New Delhi and that the order impugned before the first appellate authority was direction, containing several stipulations and caveats, to the assessing group and in much the same manner as 'additional duty deposit' is prescribed, upon scrutiny by 'special valuation branch (SVB)', for specified period. 3. From the order impugned before the first appellate authority, it may be observed that the enhancement of 20% over the declared value was directed on the finding of alleged relationship between supplier and the importer. Two aspects militate against its acceptability: exercise of empowerment to assess under section 17 of Customs Act, 1962 and the stipulations which strip the assessment of certainty. The disposal of the appeal by the first appellate authority would have been appropriate had final assessment of imported goods under section 17 Customs Act, 1962 been in dispute; the consequence of direction for enhancement is not evident either as determination of duty under section 17 of Customs Ac....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... '8. If the value of the imported goods cannot be determined under the foregoing provisions, the proper officer shall, after taking into account all relevant material which he has gathered, determine the value to the best of his judgement.' in Customs Valuation Rules, 1963 not only afforded wide latitude to officers of Customs but also epitomized the broad construction that could be placed on the several provisions in the scheme in stark contrast with the ordered and definitive engagement engendered by the later sets of rules. In an era of rudimentary communication systems with little transnational interface, mostly manual functioning and limited staffing, existence of a specialized establishment, for undertaking scrutiny of transactions among related persons or where value of services was to be determined, is attractive. Availability of information at their fingertips or 'work desks' eliminated that supplement but it's continuance could only have been of assistance in assessment. We emphasize particularly on assistance because the 'proper officer' must reign influenced if assessment is to responsible and responsive. Though Special Valuation Branch (SVB) may advise a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f any consignment to which the enhancement, specified in the impugned order, had been applied. Furthermore, it is conceded by both sides that the validity of the order in dispute ceased in February 2012 with no further review thereafter and, thus, not impacting any future imports either. The order of 2009 may, at best, be invoked in future for imports effected between 2009 and 2012 and, to escape the taint of limitation, explain away the lag by reference to pending appellate proceedings. Even so, the merit of any consequential enhancement will have to stand then on the acceptability of the order of assessment for each import. 14. It is noticed that the order of acceptance of 'invoice value' as reliable enough guide to the 'proper officer' for assessing future imports under section 17 of the Customs Act, 1962 was disputed by reviewing authority. By setting aside that order, the first appellate authority has effectively exercised power of assessment and has confined the 'proper officer' to such assessment on goods that were yet to be imported. On a query, Learned Counsel admitted that the proceedings which culminated in the impugned order had been initiated without a show ca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....is also, as yet, uncertain. It is also apparent that procedure does not deter the finalization of an assessment for want of decision by the Tribunal or, should such need arise, by the Hon'ble Supreme Court. In other words, the internal process of the customs administration that enables the proper officer, under section 17or section 18 of the Customs Act, 1962, to be assisted in the discharge of the statutory obligation and, which, legally, may not even bind the proper officer does not merit our attention. To the extent that we accord approval or disapproval at this stage, we would be appropriating the exercise of powers under section 18 of Customs Act 1962 for finalization of the assessment to ourselves and, thereby, would also erase one level of remedial jurisdiction that would, otherwise, be available to either side. This, in our view, is not the intent of section 129A of Customs Act, 1962. Therefore, it is not within the jurisdiction of the Tribunal to exercise the options in section 129B of Customs Act, 1962. 17. Chapter XV of Customs Act, 1962 contains the design and hierarchy of appeals and that entrusted with Commissioner of Customs (Appeals) is one of the sources o....