NINA CHAKA PVT. LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The appellants are contesting the allegation of undervaluation levelled against them by the customs authorities in respect of import of nylon/polyester cloth with PVC backing imported by them. The import was effected through 10 Bills of Entry (B/Es), from ICD Tughlakabad Delhi. The goods were of Taiwan origin and the bills were raised by M/s. Kabul Gulf Trading LLC Dubai, UAE.

(2.) In respect of Bill of Entry No. 103522, dated 9 -4 -96 the Customs authorities stumbled upon a Letter of Credit (L/C) established by the said trading company in favour of M/s. China Plastic Company, Taiwan, for US 55,570 as against the price of US 29,924.10 reflected in the invoice presented by the appellant along with the corresponding Bill of Entry.

(3.) The dispute relates to valuation of imported goods. The department is alleging that the declared value does not conform to the concept of "Transaction Value" as envisaged under Section 14 of the Customs Act, 1962 read with Rule 4 of Customs Valuation Rules, 1988. Obviously, in that situation, the assessable value has to be determined in accordance with the provisions contained in the Customs Valuation Rules, 1988.