The Ahmedabad Bench of the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) has held that the enhancement of the value of copper scrap on LME price is not valid in absence of acceptance by the assessee.
Hindalco Industries Ltd, the petitioner filed an appeal against the order of the Commissioner (Appeals) whereby, the assessment of bills of entry enhancing the value of the goods namely copper scrap based on LME price has been upheld.
Shri Manish Jain, counsel appeared on behalf of the appellant submitted that the appeal was rejected not on merit but mainly on the ground that the appellant has accepted the enhancement of the price through assessment of bills of entry. It was argued that the appellant have not accepted the enhancement of the value on the contrary they have not accepted the enhancement of the value by giving the letter to the Assistant/Deputy Commissioner of Customs, Mundra and also requested for passing a speaking order in terms of Section 17(5) of the Customs Act, 1962
It was contended that the value for customs duty shall be the transaction value i.e. the price paid or payable for the goods exported to India hence, in terms of Section 14(1) of the act, the transaction value is to be accepted. He further submits that the LME price cannot be relied upon to reject the declared value because the LME bulletin gives the indicative price at which the goods are traded in international trade.
Further stated that in absence of evidence to show the remittance about the invoice value, foreign supplier, declared value cannot be rejected. On the other hand, Shri Tara Prakash, Deputy Commissioner (AR) appeared on behalf of the revenue and reiterates the finding of the impugned order.
It was evident that the appellant has not accepted the enhancement of the value as they have requested for passing a speaking order in terms of Section 17(5) of the Customs Act, 1962. Further viewed that the Commissioner (Appeals) has not adduced any evidence in support of his finding that the appellant has accepted the enhancement of the value of the goods.
Based on the above said findings, a two-member bench comprising Mr Ramesh Nair and Mr C L Mahar set aside the impugned orders and remanded the matter to the assessing authority for passing a speaking order.
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