The Kolkata bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) quashed the rejection of the declared unit value of imported auto parts on the ground of absence of undervaluation.
Premier Trading Company, the appellant assessee was an importer of auto parts and imported items such as auto accessories like a Wiper Blade, Radiator, Cylinder Block, Turn Signal Switch, Oil Pump, Crankshaft, etc. from China.
The assessee appealed against the order passed by the Commissioner of Customs Port, Custom House Kolkata for rejecting the declared unit value of the imported goods and has ordered its re-determination in terms of the Customs Valuation Rules, 2007.
During the hearing of the appeal, none appeared on behalf of the assessee and A.K. Choudhary appeared on behalf of the department.
The assessee contended that hundred percent of the imported goods were examined in the presence of the SIIB Officers and no excess quantity was observed.
The Bench observed that in the case of Rabindra Chandra Paul the court held, that resort to Rule 7A- that was Computed Value assessment (Rule 8) of Customs Valuation Rules 2007, applied only to those cases where buyer and seller are related. There was no such finding in the present adjudication order. Therefore, recourse to such methodology for valuation for a variety of items imported like radiators, cylinder blocks, crankshafts, etc. was not authorized in law.
The two-member bench comprising Ashok Jindal (Judicial) and Rajeev Tandon (Technical) held that transaction value had been rejected, arbitrarily, as the department was not able to adduce any sustainable evidence in the matter.
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