GLOBAL INDUSTRIES Vs. COMMISSIONER OF CUSTOMS, COCHIN

JUDGEMENT

(1.) THE dispute in this appeal relates to value of imported goods described as betel nuts, Lali Grade C, Ungarbled, covered by two Bills of Entry No. 2253827 dated 14 -10 -2010 and No. 3944 dated 19 -10 -2010, imported at Cochin port. The importer declared the value of US $ 275 per MT. The learned adjudicating authority enhanced the value to Rs. 34/ - per kg. The learned Commissioner of Customs (Appeals) vide the impugned order upheld the enhancement of the value. The appeal is filed against the order of the Commissioner of Customs (Appeals).

(2.) IT is contended by the appellants that they have entered into two contracts dated 15th March, 2010, and 1st August, 2010 respectively; under the contract dated 15th March, 2010, they imported 1,914 MT covered by 12 Bills of Entry; under contract dated 1st August, 2010, they imported 1,687.8 MT covered by 12 Bills of Entry, all the bills of entry, except two bills of entry dated 14 -10 -2010 and 19 -10 -2010, are provisionally assessed in terms of the order of the Honble Kerala High Court and in respect of one bill of entry, no assessment is made; imports have taken place from April, 2010 to October, 2010; DGFT had issued Notification dated 4th June, 2008, permitting free import of betel nuts of the value above Rs. 35/ - per Kg., they challenged the notification of the DGFT before the Honble Kerala High Court and vide the judgment dated 2 -11 -2010, the Honble Kerala High Court set aside the said notification of DGFT; they had filed writ petition before the Honble Kerala High Court in respect of two consignments, which are subject matter of this appeal seeking provisional release. The learned adjudicating authority finally assessed two bills of entry, after giving the appellants query memo; their CHA approached the learned adjudicating authority on 19 -11 -2010, with a letter dated 19 -11 -2010, seeking provisional release of the goods in terms of order dated 12 -11 -2010 of the Honble Kerala High Court and in the alternative to finally assessed the bills of entry. Their CHA was heard on the 19 -11 -2011 itself and Bills of Entry were assessed finally on 23 -11 -2010 by enhancing the value and speaking order was passed on 6 -12 -2010. The learned adjudicating authority rejected the invoice price by invoking Rule 12(1) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 (CVR, 2007). The learned adjudicating authority further invoked Rule 5 of the CVR, 2007 and relied upon imports at Nhava Sheva and Chennai as contemporaneous import. The appellants filed the appeal before the Commissioner of Customs (Appeals), Cochin. The appellants filed writ petition seeking provisional release of the goods since the Commissioner of Customs (Appeals), Cochin was not available; in view of departmental communication dated 17 -12 -2010, the Honble High Court directed the Commissioner of Customs (Appeals), Trichy, to decide the appeal within 2 weeks. Accordingly, the Commissioner of Customs (Appeals) passed the impugned order upholding the order of the learned adjudicating authority. Hence, the instant appeal was filed.

(3.) AFTER filing, the above appeal was mentioned before the Bench on 17th January, 2011, requesting for an out of turn hearing in view of the fact that consignments are incurring heavy demurrages. The Bench acceded to the request and directed the appeal to be taken up for hearing on 24th January, 2011, after hearing the learned DR vide Misc. Order dated.18 -1 -2011. The appeal was adjourned to 25th January, 2011, at the request of the department. Goods were lying with the Customs pending clearance and there was no impediment and rather it was just and expedient to hear the appeal.