Leela Dhar Maheshwari and anr. Vs. Commissioner of Customs (import) - Court Judgment

Excerpt:
1. each of these two appeals is against the common order of the collector enhancing the value of the ball and roller bearing imported by the appellant, a penalty upon the appellant under section 112 of the act. in his order, the commissioner has applied the value for the bearings given in quotation of their hungarian manufacturer.2. the contention of the counsel for the appellants that in the absence of any evidence of contemporary imports, or anything to show that the transaction value as reflected in the invoices was not acceptable, that value has to be accepted is supported by the judgment of the supreme court in eicher tractors ltd. v. cc . in the judgment, the court has said that in the absence of an applicability of any of the exports contained in sub-rule (2) of rule 4 of the customs valuation the transaction value has to be accepted. the tribunal in its order in cc v. nippon bearings. p. ltd. , while considering imports of such bearing from hungary had not accepted the plea of the department that value should be enhanced, noting that there was no evidence of contemporary imports. this order has been upheld by the supeme court in 1996 (82) elt 3. the judgment of the supreme court in sharp business machine v. cce , cited by the departmental representative has to be distinguished. the court in that case took notice of the fact that there was a special relationship between the importer and the manufacturer. that is not the case before us.3. we therefore allow the appeals and set aside the impugned order.consequential relief.

Judgment:
1. Each of these two appeals is against the common order of the Collector enhancing the value of the ball and roller bearing imported by the appellant, a penalty upon the appellant under Section 112 of the Act. In his order, the Commissioner has applied the value for the bearings given in quotation of their Hungarian manufacturer.

2. The contention of the counsel for the appellants that in the absence of any evidence of contemporary imports, or anything to show that the transaction value as reflected in the invoices was not acceptable, that value has to be accepted is supported by the judgment of the Supreme Court in Eicher Tractors Ltd. v. CC . In the judgment, the Court has said that in the absence of an applicability of any of the exports contained in Sub-rule (2) of Rule 4 of the Customs Valuation the transaction value has to be accepted. The Tribunal in its order in CC v. Nippon Bearings. P. Ltd. , while considering imports of such bearing from Hungary had not accepted the plea of the department that value should be enhanced, noting that there was no evidence of contemporary imports. This order has been upheld by the Supeme Court in 1996 (82) ELT 3. The judgment of the Supreme Court in Sharp Business Machine v. CCE , cited by the departmental representative has to be distinguished. The Court in that case took notice of the fact that there was a special relationship between the importer and the manufacturer. That is not the case before us.

3. We therefore allow the appeals and set aside the impugned order.

Consequential relief.