ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 25.06.2025
CESTAT Delhi Sets Aside Customs Valuation Over Silk Fabric Imports
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Delhi, allowed the appeal of M/s. Elegant International by setting aside a customs demand raised by the adjudicating authority. The Commissioner had earlier rejected the declared transaction value of imported Chinese silk fabrics under Rule 10A of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, alleging under-invoicing. However, the Tribunal found the basis of the valuation untenable due to lack of direct evidence against the appellant.
Case Background
M/s. Elegant International had imported silk fabrics from Zhejiang Cathaya International, China, between 2003 and 2005 via 37 Bills of Entry. The Commissioner, Central Excise (Adjudication), New Delhi, passed an order dated 6 February 2009 alleging that the declared transaction values were suppressed. The valuation was rejected under Rule 10A, and the value was reassessed under Rule 5 of the 1988 Valuation Rules. A differential customs duty demand, redemption fine, and penalty under Section 114A of the Customs Act, 1962, followed.
The entire case against the appellant rested on evidence recovered during DRI investigations against other importers (M/s. Purnima Enterprises, M/s. Om Fabrics, and M/s. Vedant Enterprises), where duplicate invoices were allegedly used to understate import value.
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 Delhi
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