TaxTMI 
TaxTMI 
2026 (3) TMI 1542
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....of interest under Section 18(3) of the Customs Act 1962. 2. Being aggrieved by the enhancement of the value and enhanced determined customs duty, the appellants have filed their appeal before the Commissioner (Appeals). After going through all the data made available to him and the documentary evidence placed before him, the Commissioner (Appeals), has held that the assessing officer has erred in rejecting the transaction value without any valid basis or reasons and without following the due procedure as specified under Section 14 of the Customs Valuation Rules. He has remanded the matter back to the original authority to re-examine the matter after giving opportunity to the appellant. The appellant has filed an appeal being agitated by this remand order by the Commissioner (Appeals). 3. No one has appeared on behalf of the appellant. We find that even the intimation letters being sent to the appellant is being returned back by the postal authority. Therefore, we have taken up the appeal itself for disposal with the active help of the Ld D R. 4. On going through the OIO, we find that the adjudicating authority has enhanced the value of the imported goods, based on the NIDB....
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.... 7. The Hon'ble Supreme Court in the case of Century Metal Cycling Pvt Ltd v Union of India 2019-367-ELT-3 (SC) has held as under. "12. Rules 3 and 12 of the 2007 Rules i.e. Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 were enacted and enforced with effect from 10th October 2007 replacing and superseding the 1988 Rules. Rule 3(1) of the 2007 Rules states that value of the imported goods shall be the transaction value adjusted in accordance with the provisions of Rule 10 of the 2007 Rules which Rule, as observed above, deals with the costs and services which are to be added to the price actually paid or payable for the imported goods for determining the transaction value. Subrule (1) to Rule 3 is however subject to Rule 12 and therefore give primacy to Rule 12 which we shall subsequently elaborate and explain. Sub-rule (2) to Rule 3 states that value of the imported goods under sub-rule (1) shall be accepted i.e. accepted by the Customs authorities. The proviso then vide different clauses sets out the pre-conditions for accepting value of the imported goods. Rule 11 provides for declaration to be given by the importer or his agent certifying t....
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....oubts about the truth or accuracy of declared value. 'Certain reasons' would include conditions specified in clauses (a) to (f) i.e. higher value of identical similar goods of comparable quantities in a comparable transaction, abnormal discount or abnormal deduction from ordinary competitive prices, sales involving the special prices, misdeclaration on parameters such as description, quality, quantity, country of origin, year of manufacture or production, non-declaration of parameters such as brand and grade etc. and fraudulent or manipulated documents. Grounds mentioned in (a) to (f) however are not exhaustive of 'certain reasons' to raise doubt about the truth or accuracy of the declared value. Clause (ii) to Explanation states that the declared value shall be accepted where the proper officer is satisfied about the truth and accuracy of the declared value after enquiry in consultation with the importers. Clause (i) to the Explanation states that Rule 12 does not provide a method of determination of value but provides the procedure or mechanism in cases where declared value can be rejected when there is a reasonable doubt that the declared transaction value does not represent the....
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....cer is entitled to make assessment as per Rules 4 to 9 of the 2007 Rules. What is meant by the expression "grounds for doubting the truth or accuracy of the value declared" has been explained and elucidated in clause (iii) of Explanation appended to Rule 12 which sets out some of the conditions when the 'reason to doubt' exists. The instances mentioned in clauses (a) to (f) are not exhaustive but are inclusive for there could be other instances when the proper officer could reasonably doubt the accuracy or truth of the value declared. 17. The choice of words deployed in Rule 12 of the 2007 Rules are significant and of much consequence. The Legislature, we must agree, has not used the expression "reason to believe" or "satisfaction" or such other positive terms as a pre-condition on the part of the proper officer. The expression "reason to believe" which would have required the proper officer to refer to facts and figures to show existence of positive belief on the undervaluation or lower declaration of the transaction value. The expression "reason to doubt" as a sequitur would require a different threshold and examination. It cannot be equated with the requirements of posi....