2026-VIL-55-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - Valuation, Rejection of declared value, Confiscation of goods, redemption fine, penalty - Appellant voluntarily accepted that the declared value was liable for rejection under the Customs Valuation Rules, 2007 and agreed to an enhanced value - Department passed a spot adjudication order rejecting the declared value and re-determining the value. The goods were also confiscated under Section 111(m) of the Customs Act, 1962, and redemption fine and penalty were imposed - Whether the appellant's acceptance of the enhanced value was a coerced acceptance or a voluntary one – HELD - In order to reject the transaction value, the proper officer should, in the first place have some reason to doubt. If he has such reason, he can call for additional information from the importer and on receiving such information or if no information is provided, if the proper officer still has a reasonable doubt about the transaction value, it shall be deemed that the assessable value cannot be the transaction value - In this case, since the declared values were far lower than the contemporaneous values, the proper officer had reason to doubt the transaction value. When asked, the appellant agreed that the declared values may be rejected and the goods may be assessed at contemporaneous values of imports. The appellant had responded to the department's query online, sitting in his office, and could have easily disagreed with the enhancement. The proper officer had reasonable doubt about the truth and accuracy of the transaction value, and hence, was justified in rejecting the declared value. The appellant's acceptance of the enhanced value was not a coerced acceptance - Since the appellant had correctly declared the transaction value in the B/E, the goods are not liable for confiscation under Section 111(m). It is impossible for the appellant to anticipate if the proper officer would reject the transaction value and what value would be fixed - The re-determination of the value is upheld but set aside the confiscation, redemption fine, and penalty imposed under the impugned order - The appeal is partly allowed
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