2026 (4) TMI 1451

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....sioner (Appeals) upheld the Order-in-Original no. 388/2012 dated 16.07.2012, wherein the Adjudicating Authority had finalised the assessment of Shipping Bill No. 1972 dated 13.05.2011 by adopting the unit price of USD 161 PDMT FOB for the quantity of 6000 WMT and ordered for refund of revenue deposit of Rs. 2,86,601/-. 2. The brief fact is that the appellant filed the Shipping Bill dated 13.05.2011 for export of iron ore fines declaring the transaction value at USD 130 PDMT FOB based on a duly executed contract with the foreign buyer. The export was provisionally allowed and samples were drawn. The appellant deposited excise duty as directed. Upon finalisation, despite accepting Fe content variation as minor, the Adjudicating Authority r....

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....s not mention the quantity and commercial level of the transaction. The quantity and commercial level at which another exporter has exported iron ore fines should be mentioned before raising the doubt about the truth and accuracy of the declared transaction value. In this regard, he placed reliance on the following decisions: i) Obulapuram Mining Company Pvt Ltd., Vs CCCE & ST, Guntur [2018 (10) TMI 223 - CESTAT, Hyderabad] ii) Moorgate Industries India Pvt Ltd., Vs Commissioner of Central Tax, Visakhapatnam-GST [2024 (5) TMI 629 - CESTAT, Hyderabad] 6. Learned Counsel for the appellant also submits that Rule 3 of the Customs Valuation (Determination of Value of Export Goods) Rules 2007 clearly states that the value of ....

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.... order as thus: "Furthermore, while finalising the transaction value as per Section 14 of the Customs Act' 62, it was incumbent upon the respondent to follow the conditions and procedure prescribed under Rule 8(1) & (2) of the EVR, 2007. And the said conditions and procedure include issuing query memo to the appellant to furnish further information including documents or other evidence, at the request of the appellant specifying reasons in writing for doubting the declared transaction value and granting personal hearing to the appellant before taking the final decision to reject the declared price. I find in the instant impugned order, the respondent did not follow any such procedure before taking decision to reject the declared un....

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....under sub-rule (1). 12. Therefore, as above provisions, what is relied upon must be disclosed. Hon'ble Supreme Court in the cases of Century Metal Recycling Pvt Ltd., and Sanjivani Non-Ferrous Trading Pvt Ltd., supra, has categorically held that valuation cannot be enhanced based on undisclosed material. 13. Thus, once violation of natural justice is established, the order cannot be sustained. Therefore, the impugned order is vitiated on this ground alone. 14. Section 14 of the Customs Act mandates that the value of export goods shall be the transaction value, i.e. the price actually paid or payable. The Hon'ble Supreme Court in the case of Eicher Tractors Ltd., [2000 (122) ELT 321 (SC)] held that transaction value can be rejected ....