Customs Valuation once accepted in writing shall be deemed to be binding Transaction Value: CESTAT affirms Penalty

Customs Valuation - binding transaction value - CESTAT affirms - penalty - Taxscan

The Customs, Excise, Service Taxes Appellate Tribunal (CESTAT), New Delhi Bench while affirming the penalty ruled that Customs Valuation once accepted in writing shall be deemed to be binding  transaction value.

The appellant M/s Aestrik Techno Signs imported goods through Fedex Airway Bill declaring them as “small printer part, big printer part and data cable” and the quantity as 22 and declared assessable value as Rs. 15,141/- and filed Bill of entry No. 408577.

The Customs authorities examined the goods in the presence of two independent witnesses. Reckoning the contemporaneous import data of the goods that were actually imported, the total value of imported goods was re-determined as Rs. 9,21,951/- and the customs duty leviable thereon was assessed as Rs. 1,60,327.

The importer submitted a letter dated 21 July 2016 accepting the value and duty as assessed by the customs and further stated that it did not want a show cause notice or a personal hearing in the matter. Further, they requested to release their consignment on nominal fine and penalty and stated that they are ready to bear the fine and penalty.

The appellant appealed to the First Appellate Authority who, by the impugned order, partly modified the order of the Original Authority reducing the redemption fine from Rs. 2 Lakhs to Rs. 1 Lakh and also reducing the penalty imposed upon the appellant under Section 112 (a) from Rs. 90,000 to Rs. 40,000.

The department urged that the appellant had accepted the enhanced value in writing and also requested that no show cause notice may be issued and also that they do not require any personal hearing. They also agreed to pay the fine and penalty. Accordingly, the value of the goods was enhanced from Rs. 15,141 as declared by the appellant to Rs. 9,21,951.

The Coram headed by the President, Justice Dilip Gupta noted that the appellant had indeed declared the value of the goods incorrectly and on being pointed out agreed to reassessment of duty and waived his right to show cause notice and personal hearing.

The CESTAT while affirming the penalty under 112 and 114AA affirmed held that the appellant also undertook to pay the fine and penalty. Therefore, the Assessing Officer is not required to issue a speaking order. The reassessment of the duty is final as it was uncontested. Considering the declared value was only about 2% of the actual value as re-determined

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