The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the demand of Customs duty for redetermination of the transactional value of an ordinary polyurethane (PU) belt without conducting proper market value inquiry.
Panchagni Energies Pvt Ltd, the appellant assessee had imported a product described as Ordinary PU belts and was declared as invoiced at Rs. 7.48/- per piece, and the department redetermined the transactional value and demanded differential duty as well as penalty.
The original authority relied on the findings of the department and imposed the differential duty and penalty.
N D George, the counsel for the assessee contended that the the data was also of no basis and relevant and the customs authorities were abiding by the circular which categorically states that market inquiry had to be conducted.
Also submitted that there was nothing on record that customs authorities have properly conducted a market inquiry and there was no report such as Panchanama of market inquiry on record nor was any report provided by the assessee.
Anand Kumar, the counsel for the department relied on the decisions made by the lower authorities and contended that the valuation in import of PU belts on a trans-India basis indicated a price range of 18.58 to Rs. 22.50/- and the department re-determined the transactional value as per the market inquiry.
The Bench observed that the copies of some of the Bills of Entry submitted by the appellants are placed in the appeal records and even if the price of contemporaneous import is to be adopted, as per the above data, no enhancement can be made.
The two-member bench comprising Somesh Arora( Judicial) and C.L Mahar (Technical) quashed the demand and penalty imposed by the lower authorities while allowing the appeal filed by the assessee.
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