No re-enhancement of value possible once value of goods was enhanced and paid Customs duty thereon: CESTAT [Read Order]

The Kolkata bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that re-enhancement of value for assessment purposes, undertaken when the goods were already assessed and exercise for enhancement of declared value was already undertaken at the time of assessment was patently illegal and unjustified.

Premier Trading Company, the appellant assessee was an importer of auto parts and imported items such as auto accessories like a Wiper Blade, Radiator, Cylinder Block, Turn Signal Switch, Oil Pump, Crankshaft, etc. from China.  The assessee appealed against the order passed by the Commissioner of Customs Port, Custom House Kolkata for rejecting the declared unit value of the imported goods and has ordered its re-determination in terms of the Customs Valuation Rules, 2007.

During the hearing of the appeal, none appeared on behalf of the assessee and A.K. Choudhary appeared on behalf of the department.  The assessee contended that of the various items imported by them- 29 types in all the officers had verified the declared value concerning past importation and assessed Bill of Entry under the second appraisement system, enhancing the value of 12 items, whereby appropriate duty at the revised/re-determined import values was paid.

The Bench observed that there was no prohibition in law for the Commissioner to undertake adjudication in the impugned case, however, as a matter of practice that was ordinarily, not resorted to, and no reasons as required to be adduced for the rejection of the declared value, in terms of sub-rule (2) of Rule 12 of the Customs Valuation Rules- 2007, had been spelled out in the present adjudication undertaken by the Commissioner.  Also observed that in the case of Lord Shiva Overseas, the court held that no re-enhancement of value was possible once the value of goods was enhanced and duty paid thereon and Reassessment was not possible once earlier assessment had become final, without undertaking any appeal or review.

The two-member bench comprising Ashok Jindal (Judicial) and Rajeev Tandon (Technical) held that the redetermination of the value of the goods by the department was not as per the law and liable to be deleted while allowing the appeal filed by the assessee.

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