The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT), Chennai hold the revaluation of goods not subject to BIS specifications invalid as the value adopted is arbitrary and a violation of natural justice.
M/s.SK Enterprises have imported a consignment of Kids Shoes, Plastic Goggles, Hot Fix Stone etc., and filed a Bill of Entry No.3199945. During the course of examination of the goods by SIIB, it was found that there were 25 bales of optical lenses and 6 bales of soft toys with foam, and 2 bales of soft toys without foam. The issue was adjudicated by the Joint Commissioner and in an appeal filed by the appellant, the Commissioner (Appeals) passed an order confirming the order of the lower authority. The appellants have approached the High Court of Madras seeking to set aside reassessment and detention certificate for waiver of demurrage charges. The High Court remanded the matter back to this Bench to dispose of the appeal.
The Counsel for the appellant submitted that the original order has enhanced the declared value and ordered the confiscation of the goods and allowed the same to be redeemed in respect of goods for which the appellants did not have a BIS certificate. The original authority confiscated the goods and allowed the redemption for re-export on payment of a fine of Rs.55,000/- and also imposed a penalty under Section 112 (a) of the Customs Act, 1962.
The Bench consisting of Sulekha Beevi C.S., Judicial Member, and P. Anjani Kumar, Technical Member held that “Valuation of the goods was made in an arbitrary manner without giving any cogent reasons whatsoever. The lower authorities have also not adhered to the principles of natural justice. The revaluation of goods was done at the back of the importer. Though the original authority cursorily states that he has gone through the various sequential Customs Rules for valuation, there is no evidence to that effect to indicate such diligent application of rules by the lower authorities.
The reason for the rejection of the declared value is also not brought out clearly. The value adopted was arbitrary on the basis of the report claimed to have been submitted by SIIB. Thus, we find that revaluation of goods by the lower authorities do not show any application of own mind.”
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