Minor Increase or Decrease in Weight than Import Invoice Calculated Based Theoretical Weight is Allowable, No Modification Necessitated on Import Documents: CESTAT [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no modification is necessitated on import documents for minor increase or decrease in weight than import invoice calculated based on theoretical weight is allowable.           

On carrying out the weight of H.R. steel plates it was found that the physical weight is more than the weight mentioned in their import documents such as import invoices, Bill of lading etc. The department viewed that the valuation of the goods should be enhanced to the extent there is excess weight as compared to the invoiced weight of the goods accordingly, a demand of Rs. 4,37,481/- was confirmed on the excess undeclared 13.157 Metric tons of HR plates along with appropriate interest and the same was upheld by the Commissioner (Appeals).

Ms Dimple Gohil, Counsel appeared on behalf of the appellant submitted that the supplier at the time of billing calculate the theoretical weight of the goods based on the thickness, length and width of the HR steel plates and the billing was done on this basis. This is a universal practice in respect of similar types of goods globally traded. 

She further submitted that it was obvious that when theoretical weight is taken, the physical weight will always differ on either the lower side or the higher side. However, the value of the goods is determined based on the theoretical weight calculated based on the thickness, length and width of the HR steel plates, moreover, there is no extra consideration even if a slight increase in the weight. 

 The two-member bench comprising Mr Ramesh Nair, Member (Judicial) and Mr C L Mahar, Member (Technical) held that “no value can be enhanced based on the weight variation since it was obvious that when a theoretical weight is taken by adopting a formula the same will never be matching exactly with the physical weight of the goods. Therefore, due to this minor increase or decrease in the weight valuation cannot be varied.”

While allowing the appeal, the CESTAT set aside the impugned demand.

To Read the full text of the Order CLICK HERE

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