Transaction Value Prevails

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) set aside a substantial customs duty demand, confiscation order, and penalties arising from allegations of undervaluation of imported apples.

The Tribunal held that transaction value, being the primary basis of customs valuation, cannot be rejected on the strength of unverified parallel invoices, unauthenticated emails, selective overseas investigation reports, and retracted statements unsupported by independent evidence. 

In the absence of proof of additional consideration, financial flowback, or deliberate suppression, the Tribunal concluded that the Department had failed to discharge its burden under the Customs Act. The entire demand, including penalties and confiscation, was consequently quashed.