The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed re-adjudication for the rejection of transaction value or the National Import Database (NIDB) of imported goods without disclosing reports and reasons.
Krupa Chaton Mfg. Co Pvt Ltd, the appellant assessee appealed against the order passed by the Commissioner regarding the improper rejection of the transaction value which he had taken earlier also as well as regarding the adequacy and the relevance of NIDB data as well as other contemporaneous materials.
S. Suriyanarayanan, the counsel for the assessee contended that the approach of rejecting transaction value, itself was incorrect and needed affording materials to the party and all other arguments relating to rejection of transaction value or NIDB data assumed insignificance at this stage since the transaction value itself by the department was requiring disclosure of material and reasons to the party.
Himanshu P Shrimali, the counsel for the department relied on the decisions made by the lower authorities and contended that the rejection of transactions value was done as per the law and liable to be sustained.
The Bench observed that the rejection of the transaction value of imported goods by the department was without disclosing the report and reasons.
The two-member bench comprising Somesh Arora (Judicial) and Raju (Technical) remanded the matter to the original adjudicating authority to decide the rejection of the transaction value of the imported goods by the assessee.
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