The Supreme Court in Civil Appeal no. 9385 of 2022, reiteratied that Price is not the sole consideration in determining the assessable value and rejecting declared transactions.
The dispute revolved around the appellant, a regular importer of camera stabilizer devises of the respondent. They brought in a consignment covered by an invoice dated 30th January 2018, with a total value of USD 20,353.
The dispute arose when custom authorities assessed the value of imported goods at a significantly higher amount, that led to the imposition of additional customs duties, penalties, add a redemption fine.
The primary issue that was contended was the discrepancy in the declared assessable value of imported goods and the valuation determined by the customs authorities, with the appellant contesting that the goods were of a lower version and challenging the valuation rules applied by the adjudication authority.
The court in his judgment referred to provisions of the customs act, 1962, and cited the findings of the adjudication authority, CESTAT, and previous appellate decisions in the matter.
The Supreme Court, in its judgment, upheld the findings of the customs excise and service tax appellate tribunal (CESTAT) and dismiss the appeal. The court also emphasized upon the importance of factual findings and upheld the decision that imported goods were identical or similar to those previously imported by the appellant.
The court, referring to Para 10 of the judgment of Commissioner of Central Excise and Service Tax, Noida v. Sanjivani Non-ferrous Trading Pvt. Ltd, which states: “In order to invoke such a provision it is incumbent upon the assessing officer to give reasons as to why the transaction value declared in the bills of entry was being rejected; to establish that the price is not the sole consideration; and to give the reasons supported by material on the basis of which the assessing officer arrives at his own assessable value,” thereby highlighting the need for assessing officers to provide valid reasons to reject the declared transaction values and established that price cannot be the sole consideration and determining assessable value.
CASE NAME:
M/s Global Technologies and Research v. Principal Commissioner of Customs, New Delhi (Import) Civil Appeal no. 9385 of 2022 (2024 INSC 204)
NAME: Sreenishanka Vadiraj, 6th sem, BBA-LLB(Hons.)PES University, Bangalore, Intern under Legal Vidhiya.
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