ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 02.05.2025
CESTAT New Delhi- SVB Loading Rejected as Legally Unsustainable
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi, allowed the appeal of M/s Rays Engineering Works against the re-assessment of customs duty on imported goods. The Tribunal held that the enhancement of assessable value based on 13% “SVB loading” was illegal and violative of Section 17(5) of the Customs Act, 1962.
Background:
- The appellant declared the value of goods at US$ 1.25/kg for slew gear and US$ 0.67/kg for bucket tooth.
- The Assessing Officer enhanced the declared value by 13% citing SVB loading, without issuing a speaking order under Section 17(5).
- Appellant paid the enhanced duty but did not provide written acceptance of the reassessment.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT New Delhi
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