CUSTOMS ACT, 1962

Section 14

Valuation - Sunglasses of various models - Rejection of transaction value -

Assessee had imported a consignment containing Sunglasses of various models, and evaded the applicable duties of Customs by way of undervaluation of imported goods. Consignment was accorded RMS status, as such, the consignment was not subjected to usual customs procedure of examination before clearance and the consignment was cleared on 10-1-2017 itself. Since, consignment was already cleared, a search was conducted at registered premise of importer and it was found that the address at which importer had obtained IEC number was that of a residence and business premises. On examination of the samples brought, it was found that sunglasses were of "PEPE JEANS" brand. Department found that assessee had not declared the value the correct value of goods imported and rejected the value declared by assessee. Held: Section 14 provides that for the purpose of valuation the value of imported goods shall be the transaction value of such goods, i.e., to say, the price actually paid or payable for the goods when sold for export to India for delivery at the time of place of importation, or as the case may be for export from India. It was further provided that rules made in this behalf may provide for the manner and acceptance or rejection of value declared by importer or exporter, where proper officer had reason to doubt the truth or accuracy of such value and determine value for the purposes of this section. There were no reasons recorded for rejection of transaction value before taking exercise of revaluation and enhancement of transaction value. Therefore, value declared by assessee could not be rejected.

Relied:Eicher Tractors. Ltd. v. Commissioner of Customs 2000 (122) ELT 321 (SC) : 2000 TaxPub(EX) 2144 (SC) M/s. Advanced Scan Support Technologies v. C.C. 2015 (326) ELT 185 (Tri. Del.) : 2015 TaxPub(EX) 2493 (Del)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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