2026-VIL-1517-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs - Undervaluation of Imported Goods - Evidentiary Value of Export Documents -The appellants imported cigarettes and declared value at USD 5 per thousand sticks on the basis of contract with supplier in Hong Kong. The Department proposed enhancement to USD 18 per thousand sticks based on Certificate of Origin and shipping bills allegedly obtained from port of export - Whether the Department can reject declared transaction value and enhance it based on unauthenticated export documents obtained from third parties in the absence of contemporaneous price evidence - HELD - Before rejecting the invoice price, the Department has to give cogent reasons for such rejection and the Department has to find out whether there are any imports of any identical goods or similar goods at a higher price around the same time. Unless the evidence is gathered in that regard, the question of importing Section 14(1A) does not arise. In the absence of such evidence, invoice price has to be accepted as the transaction value - Casting suspicion on invoice produced by the importer is not sufficient to reject it as evidence of value of imported goods. There is a valid contract between the appellant and supplier in Hong Kong with agreed upon price of USD 5 per 1000 sticks. Appellants have not sought any preferential treatment or exemption benefit warranting production of country-of-origin certificate - The Certificate of Origin was neither specifically produced by the Appellant nor was any claim for exemption made based on said certificate and same was not part of any declaration by the party nor obtained officially by the Department from authorities issuing such origin certificate. Hence reliance placed on said document per se is not tenable – The statements under Section 108 are relevant and admissible but need to be corroborated by other admissible and urgent evidence. Documents procured from foreign customs authorities must be authenticated. Xerox copies or export declarations not even attested would not make such genuine declarations – The export declaration value cannot be made basis for increasing value of goods in India when value is derived from Section 14(1). No evidence from side of Department showing contemporaneous imports at higher price - Department has not been able to produce cogent and substantive evidence in support of wrong declaration of transaction value to reject the same - The impugned order is set aside and the appeal is allowed
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