IN THE SUPREME COURT OF INDIA
CJI and A.S. Anand, J.
MIRAH DECOR
Versus
COLLECTOR OF CUSTOMS
Special Leave Petition (C) No. 3036 of 1993, decided on 15-2-1993
Valuation (Customs) - Transaction value discarded by Customs Authorities and assessment made on the basis of price quotation obtained by them from the foreign supplier - Whether the quotation pertained to the year of import or the subsequent year - Matter remanded to Tribunal for fresh disposal after ascertaining the value at the relevant time - Section 14 of Customs Act, 1962.
- In the circumstances, we think that while all other
findings of the Tribunal are left undisturbed, the question of revaluation for
purposes of computation of duty and redemption-fine should be remitted to the
Tribunal for a reconsideration and a fresh disposal in the light of such
material as the parties may place before the Tribunal in support of their
respective contentions as to the value at the relevant time. We order
accordingly. The Tribunal will dispose of the matter within three months from
the date of receipt of a copy of this order. [paras 3, 4]
[Order]. - We have heard Shri Verma, learned senior counsel for the
appellant and learned Attorney General for the respondent.
2. On 4th January, 1993, we made the following order :
“Shri Verma contends that the very basis of revaluation suffers from the infirmity of attracting the wrong Rules. The new Rules which came into force from 16th August, 1988, stood attracted and ought to have been applied. We find this contention not substantial.
The second contention of Shri Verma is that with the
amendment of the show-cause notice, the earlier notice stood wholly replaced
with the result that only those proposals specifically set out in the latter
notice, survived and that, accordingly, the proposal for confiscation and levy
of penalty contained in the first show-cause notice must be held to have been
abandoned by the department. This contention is again equally insubstantial.
The third contention is that the quotations for revaluation
elicited from M/s. Europa Wall Coverings Ltd. pertain to the year 1988, an year
after the date of the import. On this we want the respondent to place before us
the letters addressed by the department to the said suppliers and the quotations
sent by them in response thereto so as to ascertain whether the quotations
pertained to the supplies made to the petitioner."
It is also relevant to note here that the validity of the
classification of the goods was not raised and, therefore, stands concluded.
3. The only point, therefore, that survives is the third
contention as noticed in the order dated 4th January, 1993, as to revaluation.
The revaluation for purposes of duty and redemption-fine was based on certain
quotations, said to have been obtained from M/s. Europa Wall Coverings Limited
(M/s. Europa for short). The submission is that the quotation from M/s. Europa
actually pertained, as indicated by the date of the quotation itself, to the
value of the goods as in 1988 and not as in 1987 when the import took place. But
the revenue would say that the quotation actually referred to the very
transaction M/s. Europa had with the petitioner in 1987. But no documents were
produced to establish this correlation. On the contrary, it is strenuously urged
by Shri Verma that the quotation relied upon by the revenue did not relate nor
was it in response to any enquiry as to the value of the goods actually supplied
by M/s. Europa.
4. In the circumstances, we think that while all other
findings of the Tribunal are left undisturbed, the question of revaluation for
purposes of computation of duty and redemption-fine should be remitted to the
Tribunal for a reconsideration and a fresh disposal in the light of such
material as the parties may place before the Tribunal in support of their
respective contentions as to the value at the relevant time. We order
accordingly. The Tribunal will dispose of the matter within three months from
the date of receipt of a copy of this order.
5. The appeal and the Special Leave Petition are disposed of
accordingly.
No costs.
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