M/s.MLA Metals vs CC, New Delhi

The dispute in the present appeal relates to the assessable value of the Ball Valve (Brass Bib Clock), imported by the appellant, who filed a bill of

entry dated 3.6.2009, by declaring the value as 0.16 US$ per piece. The total value of the consignment was declared as Rs.7,33,812.67.

Admittedly, the goods were unbranded and assorted goods and as observed by the adjudicating authority himself, the comparison with identical and

similar goods was not feasible. Accordingly, the Revenue got the consignment examined by one Govt. Register Valuer and Chartered Accountant,

who, opined the value of the consignment as Rs.44,76,000/-. The said opinion was based upon the detailed analysis of the valuation of the goods on the

basis of cost of material, manufacturing expenses and other relevant factors.

Based upon the Chartered Accountant’s certificate, the adjudicating authority enhanced the value and consequently, determined the differential

duty along with interest and imposition of penalty etc., and the said goods were also confiscated with redemption fine of Rs.8 Lakhs.

On going through the impugned order, we find that there is virtually no evidence on record to indicate that the transaction value of the imported

goods is not correct. Revenue has not bothered to collect any evidence to first reject the transaction value. In fact, the adjudicating authority has not

even doubted the transaction value and has simplicitor adopted the assessable value, as opined by the Chartered Accountant.

We also find that the supplier of the goods has given a certificate saying that the goods were manufactured at their factory for various other

customers, who did not take delivery and the same were sold as stock lot on “as is where is†terms without any guarantee. In such a scenario, the

transaction value as reflected in the invoice issued by the foreign supplier has to be considered as the correct assessable value when Revenue has not

produced any evidence to rebut the same. Accordingly, we set aside the impugned order and allow the appeal with consequential relief to the

appellant.