Assessment based on Tariff Values - Madras HC allows Writ Appeal filed by department
THE dispute is on valuation of Betel Nuts. Revenue adopted tariff value as fixed by Notification No 85/2013 Cus (NT) dated 21.08.2013. The importer challenged this in Writ Petition and pleaded that the transaction value should be adopted for the purpose of assessment. The single judge disposed of the Petition by directing the importer to pay the admitted customs duty and deposit 75% of the differential duty and execute bond for the remaining 25%. The revenue filed appeal against the said order. The Division Bench held:
Based on the tariff notification No.85/2013, dated 21.08.2013, the Customs Department is demanding duty on the tariff value fixed which is objected to by the respondent/importer. Admittedly, the said notification is not under challenge. The only plea raised by the respondent/importer is that it is not in consonance with the transaction value. The respondent/importer has to agitate the said issue before the appropriate forum under the provisions of the Customs Act, if he so desires. For the purpose of release of the goods, the respondent/importer is not entitled to state that Section 14(2) of the Customs Act does not apply to the present Import and that Section 14(1) has an overriding effect and that duty is payable only on the transaction value declared by him. This plea cannot be countenanced in view of the non-obstante clause in Section 14(2).
Accordingly, the Single Judge order is modified with the direction to the importer to pay 75% of the duty demanded on assessment provide Bank Guarantee for the balance 25%.