Customs Act | Importer Accepting Enhanced Valuation Of Goods For Expeditious Clearance Not 'Waiver' Of Right To Contest Re-Assessment: Delhi HC

The Delhi High Court has held that where enhancement of valuation of goods by the proper officer for the purpose of determining Customs duty is accepted by the importer under protest, for expeditious clearance, it cannot be said that the importer has waived its right to question the reassessment. The right to question the correctness of the decision of the proper officer, be it with respect to the formation of opinion or even on merits, is one which is protected by statute.” In the case at hand, the Appellants, importers of polyester knitted fabrics was aggrieved by a CESAT order which held that they, having conceded to the valuation undertaken by the proper officer, would be deemed to have waived their right to question that decision. “Not only do those documents appear to be the submission of a “without prejudice” request tendered in order to facilitate expeditious clearance of goods, the same cannot possibly be viewed or interpreted as amounting to an abandonment of the right to institute an appeal itself.” In saying so, the Court relied on Sha Mulchand & Co. Ltd. vs. Jawahar Mills Ltd., where the Supreme Court had explained that abandonment would have to be more than mere waiver, acquiescence, or laches. It cited various precedents, including Commissioner vs. Agarwal Foundries Ltd. where the Supreme Court dismissed Custom's appeal against a CESTAT Hyderabad order holding that customs authorities would be unjustified in enhancing the declared import values solely on the basis of NIDB data.