Transaction value has to be admitted as assessable value unless proved to be incorrect

In Aakash Enterprises V. Commissioner of Customs, New Delhi, the  Customs, Excise and Service Tax Appellate Tribunal, Appellant imported various automobile parts under cover of Bill of Entry on declared value. Such goods were cleared from Customs after paying customs duty. Subsequently, Appellants premises were put to search along with his residential premises, two shops and godown and goods imported vide above Bill of Entry was put to seizure on doubt of under valuation. Some other goods lying in the premises were also seized. Thereafter, statements of partner of importer firm were recorded along with statement of other persons. During course of investigations, Appellant took categorical stand that, goods other than one imported vide Bill of Entry dated 29th August, 2013 are locally procured goods and as such cannot be put to seizure.

Transaction value declared by importer stand rejected by Commissioner on sole ground that, NIDB data for contemporaneous imports reflects higher value of identical goods. This fact shows that, there is no independent evidence with Revenue to first reject transaction value. It is well settled law that, transaction value has to be admitted as assessable value unless proved to be incorrect. For such purpose, proving value to be wrong declaration, independent evidence is required and mere reference to NIDB data is not sufficient. It is held by various Courts that, NIDB data cannot be made basis for enhancement of value. One such reference can be made to Tribunal's decision in case of Commissioner of Central Excise Delhi vs. Anshikha Overseas as also to Tribunal's decision in case of Divine International vs. Commissioner of Customs, New Delhi. As such, enhancement of value is not justified.