TaxTMI 
TaxTMI 
2025 (7) TMI 8
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....ecovered under section 28 of Customs Act, 1962, along with applicable interest under section 28AA of Customs Act, 1962, on 'beta tapes' valued at Rs. 3,40,97,050 between June 2007 and October 2008 challenges re-assessment by recourse to rule 10(1)(c) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 besides penalty of like amount under section 114A of Customs Act, 1962. 2. According to Learned Counsel for the appellant, the 'beta tapes' are procured from licencees located outside India which, sometimes, were subjected to further upgradation in India and that, in accordance with normal trade practice, 'beta tapes', imported through courier, was charged to duty according to the terms of payment to the overseas sup....
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....he case of imported goods shall include, in addition to the price as aforesaid, any amount paid or payable for costs and services, including commissions and brokerage, engineering, design work, royalties and licence fees, costs of transportation to the place of importation, insurance, loading, unloading and handling charges to the extent and in the manner specified in the rules made in this behalf:' of Customs Act, 1962, to consideration incorporated in agreement between buyer and seller to be enforceable on a stipulated occurrence and such stipulation being condition of sale. 5. Value has been sought to be enhanced under the authority of rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 flowing from ....
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....luation. - (1) Subject to rule 12, the value of imported goods shall be the transaction value adjusted in accordance with provisions of rule 10;' A harmonious construct of these provisions enables perception of legislative intent to include such payments that are, directly or indirectly, to the benefit of the seller if not already included, or demonstrated to be so on challenge by customs officers, in the price for sale of the goods and as condition of sale. This 'adjustment' to value is neither 'surrogate value', which is operated in yet another manner by demonstrated relationship lacking any pretence of price not having been influence or by lack of, or unconvincing, response to notice of doubt about truth or accuracy of 'declared value....
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....rn, is described around 'price' for the limited purpose of levy. It is additionally corollary to ascertainment of 'condition of sale' and the rigidity attached to its evaluation from the changed circumstances of tax regime since that was incorporated in the context of 'taxable event' as it then was. Such provision existed as far back as the Customs Valuation Rules, 1963 and continued in the next two editions of 1988 and 2007 with appropriate refinement. It was during the currency of the intermediate regime that 'tax on services' was legislated and, only well into its dying days, did the range of the tax spread to cover especially 'post-importation service' in relation to goods. Enactment of Finance Act, 1994 and Goods and Service Tax Act, 2....
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.... thus, a clear delineation which, in the face of deeming fiction for the purpose of proviso to section 14 of Customs Act, 1962 cannot be so stretched as to bring in other deeming fictions related to sale for the purpose of rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. Disposal of the show cause notice insofar as the proposals therein for enhancement of value have not taken the legal delineation supra for consideration is questionable. In the absence of a clear finding on fact in the light of law as set out supra, we are unable to endorse the findings or decide on its incorrectness. It would, therefore, be appropriate to set aside the impugned order and remand the matter back to the original authority f....