CESTAT Dismisses Appeal on Polyester Fabric Valuation: Importer Unconditionally Accepted Enhanced Rate of US $2.30/kg for Hong Kong Consignment [Read Order]
Tribunal held that the importer, having unconditionally accepted the revised rate of US $ 2.30/kg and paid duty without protest, was barred from later challenging the assessment
![CESTAT Dismisses Appeal on Polyester Fabric Valuation: Importer Unconditionally Accepted Enhanced Rate of US $2.30/kg for Hong Kong Consignment [Read Order]](https://images.taxscan.in/h-upload/2026/05/26/2138125-cestat-new-delhi-dismissesappeal-polyester-fabricvaluation-taxscan.webp "CESTAT Dismisses Appeal on Polyester Fabric Valuation: Importer Unconditionally Accepted Enhanced Rate of US $2.30/kg for Hong Kong Consignment [Read Order]")
In a recent ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed an appeal against the enhancement of declared value for polyester knitted fabrics imported from Hong Kong. The Tribunal observed that although the importer had declared the goods at US 1.40 per kg, it later unconditionally accepted the...
In a recent ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has dismissed an appeal against the enhancement of declared value for polyester knitted fabrics imported from Hong Kong.
The Tribunal observed that although the importer had declared the goods at US 1.40 per kg, it later unconditionally accepted the revised valuation of US 2.30 per kg, paid the corresponding duty, and cleared the consignment without lodging any protest.
The appellant, Mahabal Impex, had declared the goods at US 1.40 per kg in its Bill of Entry dated 13 November 2018, but the assessing officer proposed to enhance the value to US 2.30 per kg. The appellant accepted the higher rate, paid the corresponding duty, and cleared the goods.
Subsequently, the importer appealed the assessment, arguing that the enhancement was improper and relied solely on NIDB data, citing the Delhi High Court’s decision in Niraj Silk Mills v. Commissioner of Customs (ICD Patparganj).
The Tribunal comprising Justice Dilip Gupta (President) and P.V. Subba Rao (Technical Member) found that the facts differed materially. Unlike Niraj Silk Mills, where the importer had registered protests and sought provisional assessment, Mahabal Impex had neither lodged any protest nor requested provisional clearance. The duty payment and acceptance letter were unconditional.
The bench observed that “It clearly transpires from the records that the appellant unconditionally accepted the enhanced value and paid the duty and cleared the goods and it is later that a challenge was made to the enhancement of the value in the appeal”.
Referring to its earlier Division Bench decision in Commissioner of Customs (Preventive), Jaipur v. CMR Nikkei India Pvt. Ltd., the Tribunal reiterated that an importer cannot later challenge a valuation that was voluntarily accepted.
Finding no merit in the appeal, the Tribunal dismissed it on 19 May 2026, affirming the Commissioner (Appeals)’ order dated 1 December 2021.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
