AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 344
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....0.05.2019 passed by the Additional Commissioner and rejected the appellant's appeal. 2. The appellant filed a Bill of entry dated 16.04.2019 declaring the goods as "Viscose Polyamide Woven Fabric" [other than Upholstery Fabric, Made of Artificial Staple Fibre less than 85%] and classified the goods under the Customs Tariff Item [CTI] 5516 22 00. Based on specific intelligence the goods were examined by the officers of the Customs Preventive and were found to be woven dyed fabric. Samples were sent to the Central Revenue Control Laboratory [CRCL] and the fabric was found to be of Polyester Filament Yarn [textured 34.8% and non-textured 62.7%]. Thus the goods were found to be mis-declared. The Director of the appellant was called and after....
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....nhancement of value, the assessing officer still had to follow the mandate of the statute while assessing the value of the imported goods ; (iii) The value was enhanced to U.S. $ 0.34 per sq. mtrs. on the basis of Bill of Entry No. 3164234 dated 05.05.2019 imported at Inland Container Depot, Ballabhgarh which was assessed at that value. As per Rule 5 of the Valuation Rules, the value that has to be applied is the declared value and not the assessed value of contemporaneous imports ; (iv) Redemption fine was imposed and penalties have been imposed on the appellant for mis-declaration of the nature and composition of the goods, but this mis-declaration was on account of a mistake committed by the supplier ; (v) Impo....
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....ioned, the appellant did not dispute that the goods were mis-declared. The appellant's submission was that they were mis-declared on account of the mistake of the overseas supplier. However, since the goods were already tested by CRCL, the appellant accepted the re-classification of the goods and also re-determination of the duty. 9. Next is the question of valuation. As per Rule 3 of the Valuation Rules, the value of the goods shall be the transaction value subject to Rule 12. Rule 12 provides for rejection of transaction value by the proper officer. In other words, if the transaction value is not rejected by the proper officer under Rule 12, the transaction value shall be the assessable value. If the transaction value is rejected under....
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..... - (1) For the removal of doubts, it is hereby declared that :- (i) This rule by itself does not provide a method for determination of value, it provides a mechanism and procedure for rejection of declared value in cases where there is reasonable doubt that the declared value does not represent the transaction value; where the declared value is rejected, the value shall be determined by proceeding sequentially in accordance with rules 4 to 9. (ii) The declared value shall be accepted where the proper officer is satisfied about the truth and accuracy of the declared value after the said enquiry in consultation with the importers. (iii) The proper officer shall have the powers to raise doubts on the truth or accura....
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....nsaction value shall be based on the transaction value of similar goods under Rule 5. In this case, the transaction value was determined based on the transaction value of similar goods imported through a Bill of Entry at ICD, Ballabhgarh. 13. The submission of the learned counsel for the appellant is that even if the appellant had accepted the re-classification and re-determination of the value, the officer still had to follow the procedure as per the Valuation Rules. We find that the officer did so and therefore, this submission is of no relevance. 14. The second submission of the learned counsel of the appellant is that the transaction value of the contemporaneous goods must be considered whereas what was considered was the value at....