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Supreme Court of India 2019-05-17 allowed

CENTURY METAL RECYCLING PVT. LTD vs UNION OF INDIA

Bench: 2 — Indira Banerjee, Sanjiv Khanna

In Brief

Century Metal Recycling imported aluminium scrap and disputed the customs authorities' rejection of its declared transaction value. The Court held that under the Customs Act and Valuation Rules, the declared transaction value must normally be accepted unless the customs officer has 'reasonable doubt' based on 'certain reasons' for rejection. Contemporaneous import data or corroborative evidence is essential to justify rejection. The officer must record reasons in writing and provide the importer an opportunity to respond. The importer cannot be compelled to waive the statutory right to provisional assessment. The Court allowed the appeal, setting aside the flawed assessment order that had rejected the declared value without proper justification.

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Customs Law Valuation of Goods Administrative Law Constitutional Law (Article 226) Customs Tariff

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