C/10564/2015 — Hindalco Industries Ltd vs Mundra

Customs, Excise & Service Tax Appellate Tribunal West Zonal Bench At Ahmedabad

REGIONAL BENCH- COURT NO.3

Customs Appeal No.10564 of 2015

(Arising out of OIA-MUN-CUSTM-000-APP-031-033-14-15 dated 03/02/2015 passed by Commissioner of CUSTOMS-MUNDRA) Hindalco Industries Ltd ………Appellant Unit Birla Copper Po Dahej Bharuch, Gujarat

VERSUS

C.C.-Mundra ………Respondent Office Of The Principal Commissionerate Of Customs, Port User Buld. Custom House Mundra, Mundra Kutch, Gujarat-370421

WITH  Customs Appeal No.10565 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10566 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11020 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11021 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11022 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11023 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11024 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11025 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11026 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11027 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11028 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11029 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11030 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11031 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11032 of 2015 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.11033 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11254 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11255 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11256 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11257 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11258 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11259 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11260 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11261 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11262 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11263 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11302 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11303 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11304 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11305 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11306 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11307 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11308 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11309 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11310 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11311 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11312 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11313 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11314 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11391 of 2015 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.11392 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11393 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11394 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11395 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11396 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11397 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11398 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11399 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11400 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11401 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11402 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11403 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11404 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11405 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11406 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11407 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11408 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11409 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11410 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11411 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11905 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11906 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11907 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11908 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11909 of 2015 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.11910 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11911 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11912 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11913 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11914 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11915 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11916 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11917 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11918 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11919 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11920 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11921 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11922 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11923 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11924 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11925 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11926 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11927 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11928 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11929 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11930 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11931 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11980 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11981 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11982 of 2015 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.11983 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11984 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11985 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11986 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11987 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11988 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11989 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11990 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11991 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11992 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11993 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11994 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11995 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11996 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11997 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11998 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.11999 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12000 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12001 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12002 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12003 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12004 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12005 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12006 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12007 of 2015 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.12008 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12009 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12010 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12011 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.12012 of 2015 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10001 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10002 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10003 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10004 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10005 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10006 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10007 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10008 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10009 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10010 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10011 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10012 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10013 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10014 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10015 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10016 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10017 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10018 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10019 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10020 of 2016 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.10021 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10022 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10023 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10024 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10025 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10026 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10027 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10028 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10029 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10030 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10031 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10032 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10033 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10034 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10035 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10036 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10037 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10038 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10039 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10040 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10041 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10042 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10043 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10044 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10045 of 2016 (HINDALCO INDUSTRIES LTD)

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 Customs Appeal No.10046 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10047 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10048 of 2016 (HINDALCO INDUSTRIES LTD)  Customs Appeal No.10049 of 2016 (HINDALCO INDUSTRIES LTD)

(Arising out of OIA-MUN-CUSTM-000-APP-001-014-15-16 dated 06/04/2015 passed by Commissioner of CUSTOMS-MUNDRA) (Arising out of OIA-MUN-CUSTM-000-APP-045-054-15-16 dated 19/05/2015 passed by Commissioner of Central Excise, Customs and Service Tax-MUNDRA) (Arising out of OIA-MUN-CUSTM-000-APP-058-091-15-16 dated 02/06/2015 passed by Commissioner of CUSTOMS-MUNDRA) (Arising out of OIA-MUN-CUSTM-000-APP-129-156-15-16 dated 21/08/2015 passed by Commissioner of CUSTOMS-MUNDRA) (Arising out of OIA-MUN-CUSTM-000-APP-162-194-15-16 dated 08/09/2015 passed by Commissioner of CUSTOMS-MUNDRA) (Arising out of OIA- MUN-CUSTM-000-APP-197-245-15-16 dated 15/10/2015 passed by Commissioner of CUSTOMS-MUNDRA) APPEARANCE:

Shri Manish Jain, Advocate for the Appellant Shri Tara Prakash, Deputy Commissioner (AR) for the Respondent

CORAM: HON'BLE MEMBER (JUDICIAL), MR. RAMESH NAIR
HON'BLE MEMBER (TECHNICAL), MR. C.L.MAHAR

Final Order No. A/ 10535-10704 /2023

DATE OF HEARING: 22.02.2023 DATE OF DECISION: 24.03.2023 RAMESH NAIR These appeals are directed against order of the Commissioner (Appeals) whereby, the assessment of bills of entry enhancing the value of the goods namely copper scrap on the basis of LME price has been upheld. 02. Shri Manish Jain, learned counsel appearing on behalf of the appellant at the outset submits that the learned counsel has rejected the appeal not on merit but mainly on the ground that the appellant have accepted the enhancement of the price through assessment of bills of entry therefore, the

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appellant cannot file appeal before the Commissioner (Appeals). It is his submission that the appellant have not accepted the enhancement of the value on the contrary they have not accepted the enhancement of the value by giving the letter to the Assistant/Deputy Commissioner of Customs, Mundra and also requested for passing a speaking order in terms of Section 17(5) of the Customs Act, 1962 therefore, the ground on which the Commissioner (Appeals) has passed order is baseless and without any evidence. 2.1 Without prejudice, he further submits that against the self assessed bill of entry, the appeal can be filed under Section 17(5) of the Customs Act, 1962. He placed reliance on the following judgments:-
 ITC Limited Vs. Commissioner of Central Excise- 2019 (9) TMI 802-SC  NEYYELI LIGNITE CORPORATION INDIA LTD.-2022 (4) TMI 1374- Madras High Court  BRIGHTPOINT INDIA PRIVATE LIMITED- 2022 (97) TMI 882- CESTAT Ahmedabad 2.2 He further submits that the value for the purpose of customs duty shall be the transaction value i.e. the price actually paid or payable for the goods exported to India hence, in terms of Section 14(1) of the act, transaction value is to be accepted. He further submits that the LME price cannot be relied upon to reject the declared value because the LME bulletin gives the indicative price at which the goods are traded in the international trade. He placed reliance on the following judgments:-  PAWAN GOEL- 2001 (135) ELT 1425 (Tri.)  PUSHPAK METAL CORPORATION- 2014 (312) ELT 381 (Tri.-Ahmd.)  GURU RAJENDRA METALLOYS INDIA PRIVATE LIMITED- 2020 (374) E.L.T. 617 (Tri.-Ahmd)  TEEKAY FLOWFLEX PVT. LTD.- 2017 (357) ELT 977 (Tri.-Mumbai)

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It is his submission that in absence of evidence to show the remittance about the invoice value, foreign supplier, declared value cannot be rejected. Without prejudice to the above, he also submits that advance license cannot be debited at enhanced value when there is no evidence that the appellants have paid additional consideration to the foreign supplier. Reliance in this regard is placed on the following decisions:-  UMA SONS- 1996 (88) ELT 540 (Tri.)  MANJUSHREE MINERALS LTD.- 1993 (68) E.L.T. 273 (Cal.) 03. Shri Tara Prakash, learned Deputy Commissioner (AR) appearing on behalf of the revenue reiterates the finding of the impugned order.
04. We have carefully considered the submissions made by both the sides and perused the records. We find that the appeal can be disposed of only on the threshold point that whether the appellant have accepted the enhancement of the value or otherwise without going into other issues. We find that the learned Commissioner (Appeals) rejected the appeal only on the ground that the appellant during assessment of bill of entry have accepted the enhancement of the value of imported scrap. We find that contrary to this, the appellant invited our attention to the letter written by them to the assessing authority, one of the sample letter is scanned below:-

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From the above letter, it is clear that the appellant have not accepted the enhancement of the value, moreover, they have requested for passing a speaking order in terms of Section 17(5) of the Customs Act, 1962. The Commissioner (Appeals)’s finding that the appellant have accepted the enhancement of value is absolutely contrary to the facts in the above letter. Moreover, the Commissioner (Appeals) has not adduced any evidence in support of his finding that the appellant have accepted the enhancement of the value of the goods. In this position, we are of the view that as per the principles of natural justice, the assessing authority is required to pass a speaking order, considering all the submissions to be made by the appellant. 4.1 Accordingly, we set aside the impugned orders and remand the matter to the assessing authority for passing a speaking order. Needless to say that

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the appellant shall be given sufficient opportunity for presenting their defence and also personal hearing be given before passing a speaking order.
05. The appeals are allowed by way of remand to the assessing officer. (Pronounced in the open court on 24.03.2023)

                                                                                   (RAMESH NAIR) 
                                                                            MEMBER (JUDICIAL) 

                                                                        








                                    (C L MAHAR) 
                                                                         MEMBER (TECHNICAL) 

Mehul