2026-VIL-1064-CESTAT-ALH-CU
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CUSTOMS CESTAT Cases

Customs - Valuation - Acceptance of Enhanced Value - Appellant, an importer of polyester knitted fabrics, submitted letters accepting enhancement of assessable value under protest after being denied provisional clearance and facing delays, demurrage and warehousing charges. The proper officer reassessed the value without following the mandate of Section 14 of the Customs Act, 1962 read with Rule 12 of the Customs Valuation Rules, 2007, and without communicating in writing the grounds for doubting the declared value. The Commissioner (Appeals) rejected the appellant's appeals holding that since the appellant had accepted the enhancement in writing, no speaking order was required under Section 17(5) of the Customs Act, 1962 - Whether letter of acceptance submitted by importer under coercion relieves proper officer of obligation to issue speaking order and deprives importer of right to question reassessment – HELD - The mandate of Rule 12(2) of the Customs Valuation Rules, 2007 to intimate the importer in writing the grounds for doubting the truth or accuracy of the declared value cannot be ignored or waived. The proper officer is duty bound to communicate in writing the reasons for rejection of transaction value to the importer. The perceived concession made in respect of the opinion harboured by the proper officer cannot be construed as depriving the importer of the right to question the correctness of the decision of the proper officer in accordance with law, as the right to question is protected by statute - A letter of acceptance submitted under coercion due to delays in clearance and financial liabilities does not constitute a complete or abject surrender of the right to assail or question a reassessment. The proper officer could not be relieved of the obligation to pass a speaking order under Section 17(5) when the declared value is rejected and reassessed. The enhancement of value based solely on NIDB data without corroborative evidence or contemporaneous import comparisons is unwarranted, and any reassessment must be supported by independent and cogent evidence - The impugned orders are set aside and the appeals are allowed
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