TaxTMI 
TaxTMI 
2005 (4) TMI 236
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.... 20-4-2004 OIA 125/2004 dated 29-6-2004 8. C/373/03 Md. Fariz & Company CC, Cochin OIO 10/2004 dated 29-3-2004 OIA 112-115/2004 dated 15-6-2004 9. C/389/04 CC, Cochin Keveeyem & Co. OIO 13/2004 dated 31-3-2004 OIA 112-115/2004 dated 15-6-2004 10. C/392/04 CC, Cochin Keveeyem Co. OIO 05/2003 dated 11-3-2004 OIA 112-115/2004 dated 15-6-2004 11. C/393/04 CC, Cochin Keveeyem Co. OIO 11/2004 dated 25-3-2004 OIA 112-115/2004 dated 15-6-2004 12. C/412/04 CC, Cochin Keveeyem Co. OIO S33/127/2004 dated 12-7-2004 OIA 167/2004 dated 21-9-2004 13. C/413/04 CC, Cochin Keveeyem Co. OIO 27/2004 dated 6-5-2004 OIA 131/2004 dated 22-7-2004 2. The appellants imported Betel Nuts of Indonesian origin through Cochin Port under various Bills of Entry. The declared value of the goods is 175 USD per MT. In certain cases, the value was 180 USD per MT. Some goods were cleared on the basis of the declared value. However, the Customs authorities received information from the Directorate of Valuation, Mumbai regarding contemporaneous import of the same goods through other ports in India. The data received from the Valuation Directorate revealed that prima facie, there is a....
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....bsp; Fatore - Cracked Nuts - 20% (3) Lali - Darkened Nuts - 20% (4) Lali 2nd - Black tinted nuts - 10% (5) Chilka - Cut Nuts or Nuts having the inner coating - 10% (6) Dust/Pieces - Wastage - 10% Through garbling process, the various grades of Betel Nuts were segregated. (iii) About 90% of Betel Nuts in India is consumed in North India. Therefore, through other ports only garbled Betel Nut is imported, as there are no processing facilities. Through other ports, the following grades of Betel Nuts are imported. (1) Betel Nut Whole - 1st quality (2) Betel Nut - Split (3) Betel Nut - Lali (4) Boiled Betel Nut In view of this reason, there is value addition even before i....
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....t be rejected, was not considered by the lower authorities. (x) Confirmation of transaction value through corresponding banking transaction ought to have been considered as conclusive evidence Arkay Overseas v. CC, Mumbai - 2004 (167) E.L.T. 468 (Tri.-Del.) (xi) The fact that the contracted amount was more than 20 times the quantity of alleged contemporaneous import (10 times in the case of Mohd. Fariz & Co.) was not adequately appreciated by the first Appellate Authority. The 20% reduction given is grossly inadequate. The declared value ought to have been accepted as the transaction value. The following case-laws are relied on. (1) Basant Industries v. Addl. Collector - 1996 (81) E.L.T. 195 (S.C.) (2) OCL India v. Commissioner - 2001 (137) E.L.T. 450 (3) Computility Computers Systems v. Commissioner - 2003 (158) E.L.T. 462 (4) Enfield Industries Ltd. v. Commissioner - 2004 (169) E.L.T. 179 (5) U.S. Magnets (P) Ltd. v. Collector - 2002 (146) E.L.T. 329 upheld by ....
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....be accepted. (Eicher Tractor case). Invocation of Section 28(1) of the Customs Act or Rule 10(A) of the Valuation Rules cannot get over the primary obligation imposed on Revenue by Section 14 of the Customs Act and Rule 4(1) of the Valuation Rules. Rule 10(A) is not a non-obstante provision or having any overriding effect on other Rules. Therefore, even if value is sought to be fixed under Rule 10(A), the other Rules of Valuation will come into effect and will have to be necessarily followed. 5. The learned JCDR submitted that Betel Nuts of Indonesian origin imported through other ports have higher value. The present appellants have no documentary evidence to show that the goods imported are ungarbled Betel Nuts. Even the charges for garbling cannot account for a huge difference in value. She also said that there is no justification for giving even 20% reduction in the enhanced value. Under these circumstances, she urged the Bench to reject the parties appeals and also to set aside the Commissioner (Appeals) order giving 20% reduction in the enhanced value fixed by the Department. 6. We have gone through the records of the case. The Revenue has enhanced the value of the Betel Nut....