ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 22.05.2025
CESTAT Kolkata- valuation enhancement was arbitrary and unsupported
The Eastern Zonal Bench of CESTAT, Kolkata upheld the decision of the Commissioner (Appeals) in favor of Aahana Commerce Pvt. Ltd., rejecting the Revenueβs appeal challenging the classification and assessable value of imported goods, namely motor controllers and electric tricycle spare parts.
The Tribunal confirmed that the goods were correctly classified under CTH 8503 0090 and also held that the transaction value declared by the importer was valid, striking down the enhancement made by the assessing officer.
Background of the Case
- Importer: Aahana Commerce Pvt. Ltd., Kolkata
- Goods Imported: Motor controllers and electric tricycle spare parts
- Departmentβs Actions:
- Rejected declared value and enhanced the CIF value
- Reclassified motor controllers from CTH 8503 0090 to CTH 8708 9900
- Importer paid enhanced duty under protest to avoid demurrage
- Commissioner (Appeals):
- Accepted the declared transaction value
- Restored classification to CTH 8503 0090
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 Kolkata
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