TaxTMI 
TaxTMI 
2025 (12) TMI 836
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....hearing both the sides, are that HDFC Bank Ltd. [Appellant] had during the relevant period under dispute imported gold bars through their CHA and in the Bills of Entry they had declared a certain value therein. The Revenue under the pretext that due to change in rate of duty from specific duty to ad valorem as per Customs Notification No.02/2012 dated 16.01.2012 wanted to ascertain the correct transaction value as the Bills of Entry were assessed based on the declared value only and accordingly vide letter dated 30.03.2012 required the Importer--Appellant to furnish statement of sale of imported goods (Bills of Entry wise) to the buyers indicating the details of sale price, actual remittances made to the suppliers apart from Customs Duty re....
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....thorities and we have also considered the documents placed in the Appeal record before us. Upon hearing both the sides, the only issue that arises for our consideration is, "whether the addition under the guise of short--payment of duty which related to the actual remittances made by the Appellant to its foreign suppliers as compared to the declared/transaction value at the time of import, is justified in law?" 4. Ld. Consultant would submit at the outset, that the authorities below have grossly erred in not appreciating the vital fact that there was no "sale" at the time of import of goods vide Bills of Entry since the transaction value was on a consignment basis; the property i.e. gold bars in question continued to vest with the foreig....
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....f valuation which is subject to Rule 12 to mean the value of imported goods shall be the transaction value adjusted in accordance with the provisions of Rule 10. It is his case that a harmonious reading of the above provisions mandates that the transaction value of the goods is only determined when the goods are 'sold for export to India' and such price must be for delivery at the time and place of importation. Laying further emphasis on "sale", he invited our attention to the Advisory Opinion by the Technical Committee on Customs Valuation (constituted under the aegis of Article VII of the General Agreement on Trade & Tariffs (GATT) wherein the Advisory Opinion 1.1. described the concept of 'sale' as under : Advisory Opinion 1.1. ....
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....s also found that the date on which the ownership transfers to the Appellant has to be taken as the deemed date of importation....", to contend that the Commissioner has seriously erred in introducing a deeming fiction in Section 14 ibid which is not appearing in the statute itself and therefore, above conclusion is illogical. He would further contend that the Commissioner (Appeals) had proceeded on a wrong premise insofar as the taxable event is concerned since the sale of goods took place on a much later date after import and consequently, the transaction value as prevailing on the date of import should be adopted if available, in terms of Section 14 ibid. In this regard, he has relied on (i) Garden Silk Mills Ltd. Vs Union of In....
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....een made as and when sales took place, which is also in terms of provisions of Agreement entered into between the Overseas Suppliers and the Appellant--Bank. In view of the above, he would submit that the impugned order which sustained the demand is not in accordance with law and hence, he prayed for setting aside the impugned order by allowing the Appeal. 9. Per contra, Ms. Rajni Menon, Ld. Dy. Commissioner supported the findings by the lower authorities. She also submitted that whole exercise was required due to the change in rate of duty from specific duty to ad valorem duty in terms of Customs Notification No.02/2012 ibid and, in any case, the Appellant has not denied the fact of remitting higher amount than what was declared at the ....
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.... and therefore the same cannot be entertained. 11. It is an undisputed fact that the duty was paid on the declared value which was the internationally prevailing gold price as on the date of import. The same is also apparently based on the suppliers' invoices. If there was any doubt on the above prevailing price, then ideally there should have been attempts to find out the transaction value of identical goods sold for export at or about the same time, which is not done, it is not as though there was no such import of gold at or about the same time. 12. In the light of our observations, we now venture into the correctness of rejection by the Revenue of the declared transaction value by the Appellant on which duty stood paid at the time....