The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directed to ascertain the veracity of data from balance sheet and observed that the findings of the Special Valuation Branch (SVB) are not binding on Commissioner of Customs.
The appeal of M/s GlaxoSmithKline Asia Pvt Ltd, is against order of Commissioner of Customs (Appeals), challenged the remand directed thus to the Deputy Commissioner with submission of the counsel for appellant that it is not within the jurisdiction of the first appellate authority to do so and that the order of the original authority should not have been set aside.
The appellant had entered into agreement with M/s GlaxoSmithKline Biologicals SA, Belgium for import of ‘vaccines’ specified in the schedule therein which was commenced in 2007. Owing to admitted relationship of the two entities, the matter was referred to Special Valuation Branch (SVB) and, in communication dated 17th November, 2008 the declared value was held as acceptable. Appeal filed at the behest of the jurisdictional Commissioner of Customs, before the first appellate authority was dismissed.
In further appeal of Revenue, order of the Tribunal held that the matter was required to be heard afresh by the first appellate authority for having traversed beyond the issue in appeal. The first appellate authority took note of the decision of the Tribunal and held as supra for a fresh decision by the original authority.
The dispute, is limited to the period of three years from January 2007, in appeal before the first appellate authority on the ground that the original authority had not scrutinized the balance sheet for ascertaining the correctness of the ‘transportation charges’, ‘manufacturing overheads’, ‘promotional expenses’, ‘selling and distribution cost’ and ‘margin of profit’ intimated in the computation furnished by them to Special Valuation Branch (SVB).
A Two-Member Bench comprising CJ Mathew, Technical Member and Ajay Sharma, Judicial Member observed that “The findings of the Special Valuation Branch (SVB) are not binding on ‘proper officer’ exercising such statutory powers and no action, unless initiated under the cited provisions, can be detrimental to the appellant herein. We see no prejudice thereby as appellant has not brought on record that any particular import to be assessed, provisionally or finally, will be impacted by mere ascertainment of the details furnished by the importer and, that too, only by reference to their own record.”
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