2025-VIL-1813-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs – Sections 108, 111(m) and 138B of Customs Act, 1962 – Rules 9 and 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 – Import of spray paints – Allegation of undervaluation – Rejection of transaction value – Appellant imported 14 consignments of spray paints from three foreign suppliers and filed Bill of Entry for clearance – On basis of proforma invoices retrieved from e-mail account of Appellant, department issued show cause notice proposing to reject transaction value under Rule 12 of the Rules, re-determine it under Rule 9 of the Rules and demand differential duty – Principal Commissioner confirmed proposals made in show cause notice – Whether rejection of transaction value under Rule 12 of the Rules is sustainable – HELD – Impugned order placed reliance on statement made by Appellant under Section 108 of the Act to effect that prices mentioned in proforma invoices were correct and were much higher than commercial invoices. Statement made by Appellant under Section 108 of the Act cannot be considered as relevant, as procedure contemplated under Section 138B of the Act had not been followed. After the statement was made, Appellant retracted the statement immediately. Appellant clearly stated that he was told that if he refused to sign in typed statement, he would be arrested with his family members. Appellant further stated that, to save himself from arrest and to save his family members from harassment, he signed typed statement without even reading it. Printouts alleged to have been taken during course of statement made by Appellant were not recorded under a panchnama. There is no other evidence which may substantiate undervaluation of goods imported through consignments. In these circumstances, transaction value could not have been rejected under Rule 12 of the Rules, as a result of which, it could not have been re-determined under Rule 9 of the Rules. Impugned order passed by Principal Commissioner is set aside – Appeal allowed
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