CUSTOM-The basic principle of levy of customs duty, in view of the aforementioned provisions, is that the value of the imported goods has to be determined at the time and place of importation. The value to be determined for the imported goods would be the payment required to be made as a condition of sale. Assessment of customs duty must have a direct nexus with the value of goods which was payable at the time of importation.
Valuation Alerts issued by DG of Valuation provides guidance only, assessment authority is required to pass an Assessment Order in a given factual matrix.
Century Metal Recycling Pvt. Ltd. and Another Vs. Union of India and Others – MAY 17, 2019 -Valuation Alerts, as also stated by the respondents, are issued by the Director General of Valuation based on the monitoring of valuation trends of sensitive commodities with a view to take corrective measures. They provide guidance to the field formation in valuation matters. They help ensure uniform practice, smooth functioning and prevent evasion and short payment of duty. However, they should not be construed as interfering with the discretion of the assessment authority who is required to pass an Assessment Order in the given factual matrix. Declared valuation can be rejected based upon the evidence which qualifies and meets the criteria of ‘certain reasons’.
We would reproduce Section 14 of the Act and Rules 3 and 12 of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 (‘the 2007 Rules’, for short) which read as under: “ Section […]
GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No.55/2018 – Customs (N.T.) New Delhi, dated the 21st June, 2018 31 Jyaistha 1940 […]
Customs Act, 1962 Chapter- I Preliminary Chapter -II Officers of Customs Chapter -III Appointment of Customs Ports, Airports, Warehousing Stations etc. Chapter -IV Prohibitions on importation and exportation of goods Chapter- IVA […]