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VLCC Healthcare Limited V/S CC (Prev.), New Delhi


Company & Directors' Information:- R G S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110PB2004PTC047381

Company & Directors' Information:- R G S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110CH2004PTC027689

Company & Directors' Information:- P. H. HEALTHCARE PRIVATE LIMITED [Active] CIN = U33110MH2010PTC208651

Company & Directors' Information:- B G P HEALTHCARE PRIVATE LIMITED [Active] CIN = U24232GJ2007PTC050417

Company & Directors' Information:- D R HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110GJ2006PTC048008

Company & Directors' Information:- DELHI HEALTHCARE CORPORATION LIMITED [Active] CIN = U74999DL2016SGC299602

Company & Directors' Information:- M J HEALTHCARE PRIVATE LIMITED [Active] CIN = U93090PN2008PTC132455

Company & Directors' Information:- S J HEALTHCARE PRIVATE LIMITED [Active] CIN = U85190MH2005PTC153435

Company & Directors' Information:- G J HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110PB1998PTC021049

Company & Directors' Information:- I M HEALTHCARE PRIVATE LIMITED [Active] CIN = U24232CH2010PTC032454

Company & Directors' Information:- K G HEALTHCARE LIMITED [Active] CIN = U85110TZ1995PLC006402

Company & Directors' Information:- C S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110GJ2012PTC070018

Company & Directors' Information:- M M HEALTHCARE LIMITED [Active] CIN = U74899DL1988PLC034339

Company & Directors' Information:- A L B HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85110UP2002PTC026786

Company & Directors' Information:- S B M HEALTHCARE (INDIA) PRIVATE LIMITED [Active] CIN = U33112DL2005PTC140703

Company & Directors' Information:- S A HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85100OR2014PTC018365

Company & Directors' Information:- AND HEALTHCARE LIMITED [Active] CIN = U51909PB2017PLC046446

Company & Directors' Information:- D. S. HEALTHCARE PRIVATE LIMITED [Active] CIN = U24232WB2007PTC115617

Company & Directors' Information:- B N HEALTHCARE PRIVATE LIMITED [Active] CIN = U15412AS2000PTC006258

Company & Directors' Information:- P AND B HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U24230GJ2013PTC075056

Company & Directors' Information:- M M D HEALTHCARE LIMITED [Active] CIN = U65921CH1996PLC017595

Company & Directors' Information:- A AND R HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239DL1999PTC102404

Company & Directors' Information:- K. N. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85320RJ2018PTC061003

Company & Directors' Information:- R F B HEALTHCARE PRIVATE LIMITED [Active] CIN = U85190DL2021PTC384643

Company & Directors' Information:- M S HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239MH2001PTC130893

Company & Directors' Information:- G A S HEALTHCARE PRIVATE LIMITED [Active] CIN = U74999BR2018PTC038700

Company & Directors' Information:- L. J. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100HR2019PTC078493

Company & Directors' Information:- J. R. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85191UP2013PTC054982

Company & Directors' Information:- M A P H HEALTHCARE PRIVATE LIMITED [Under Process of Striking Off] CIN = U85100WB2010PTC144870

Company & Directors' Information:- N. C. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85191DL2007PTC164437

Company & Directors' Information:- N Y HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230GJ2010PTC063348

Company & Directors' Information:- PREV. INDIA PRIVATE LIMITED [Active] CIN = U93000CH2020FTC043071

Company & Directors' Information:- H 4 HEALTHCARE PRIVATE LIMITED [Active] CIN = U15100MH2021PTC353283

Company & Directors' Information:- D. B. HEALTHCARE PRIVATE LIMITED [Active] CIN = U33205MH2014PTC253439

Company & Directors' Information:- K S V HEALTHCARE PRIVATE LIMITED [Active] CIN = U85195HR2011PTC043767

Company & Directors' Information:- N M HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110MH2000PTC125392

Company & Directors' Information:- T K HEALTHCARE (INDIA ) PRIVATE LIMITED [Strike Off] CIN = U85190MH2003PTC139346

Company & Directors' Information:- A R HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110CH2013PTC034820

Company & Directors' Information:- I P HEALTHCARE PRIVATE LIMITED [Active] CIN = U24239DL2003PTC121211

Company & Directors' Information:- A 2 Z HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100DL2010PTC208860

Company & Directors' Information:- K. D. HEALTHCARE INDIA PRIVATE LIMITED [Strike Off] CIN = U85100DL2015PTC281658

Company & Directors' Information:- A P HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230MH1999PTC122520

Company & Directors' Information:- K Y O S HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U51397HP2010PTC031280

Company & Directors' Information:- Z F HEALTHCARE PVT. LTD. [Active] CIN = U29295MH2006PTC164255

Company & Directors' Information:- K. B. B. K. HEALTHCARE PRIVATE LIMITED [Active] CIN = U85110RJ2013PTC041465

Company & Directors' Information:- T.H.E. HEALTHCARE COMPANY PRIVATE LIMITED [Strike Off] CIN = U33111MH2012PTC229451

Company & Directors' Information:- J S B HEALTHCARE PRIVATE LIMITED [Active] CIN = U74120MH2013PTC248848

Company & Directors' Information:- J S D HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U74120UP2011PTC046578

Company & Directors' Information:- S V T HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85100TZ2009PTC015287

Company & Directors' Information:- A N S HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100HP2011PTC031745

Company & Directors' Information:- J M HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230CH2007PTC030943

Company & Directors' Information:- P R HEALTHCARE PRIVATE LIMITED. [Strike Off] CIN = U24231DL2003PTC120123

Company & Directors' Information:- R S M HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U24232DL2005PTC136255

Company & Directors' Information:- M H HEALTHCARE PRIVATE LIMITED [Active] CIN = U74999DL2016PTC289311

Company & Directors' Information:- N T HEALTHCARE PRIVATE LIMITED [Active] CIN = U85100DL2012PTC241304

Company & Directors' Information:- R A HEALTHCARE PRIVATE LIMITED [Strike Off] CIN = U85190DL2009PTC188221

Company & Directors' Information:- G & G HEALTHCARE PRIVATE LIMITED [Active] CIN = U51397HR2015PTC057293

Company & Directors' Information:- P D HEALTHCARE PRIVATE LIMITED [Active] CIN = U24230GJ2004PTC045131

Company & Directors' Information:- L. V. G. HEALTHCARE PRIVATE LIMITED [Active] CIN = U24233GJ2006PTC047749

Company & Directors' Information:- S H G HEALTHCARE PVT LTD [Strike Off] CIN = U85110WB1989PTC047231

    Customs Appeal No. 54525 of 2015 (Arising out of order in appeal No. CC(A) CUS/1038/2015 dated 23.09.2015 passed by the Commissioner of Customs (Appeals), New Delhi) and Final Order No. 54477/2017

    Decided On, 30 June 2017

    At, Customs Excise Service Tax Appellate Tribunal New Delhi

    By, THE HONORABLE JUSTICE: DR. SATISH CHANDRA
    By, (PRESIDENT) AND THE HONORABLE JUSTICE: V. PADMANABHAN
    By, MEMBER

    For Petitioner: S. Vasudevan, Advocate And For Respondents: R.K. Manjhi, AR



Judgment Text


1. The appeal is filed against the order-in-appeal No. CC(A) CUS/1038/2015 dated 23.09.2015 passed by the Commissioner of Customs (Appeals), New Delhi. The appellant is engaged in the business of providing wellness, fitness, beauty and healthcare services. The appellant imported certain equipments for use in their centres and filed Bill of Entry No. 3417377 dated 30.09.2014 for import from M/s. Viora Ltd., Israel. The Customs Department did not accept the declared value of the machine and reassessed the value at a higher rate and demanded differential duty. The imported goods were also ordered for confiscation under Section 111 of the Customs Act, 1962 and goods were allowed to be redeemed on payment of fine of Rs. 3 lakhs. Penalties were also imposed under Section 28 and 28AA of the Customs Act, 1962. The order of the original authority was upheld by the Commissioner (Appeals). Aggrieved by the impugned order, the present appeal has been filed.

2. With the above background, we have heard Sh. S. Vasudevan, ld. Counsel for the appellant and Sh. R.K. Mishra, ld. AR for the Revenue.

3. Ld. Counsel for the appellant submitted that the goods were imported from M/s. Viora Ltd., Israel on the basis of an MOU entered into by the appellant. Since several machines were imported, the supplier agreed to negotiated price of US$ 10,000 per unit in respect of reaction machine. However, the Customs authorities have reassessed the value of these machines at US$ 14,000 solely on the basis of the statement given by Sh. Mahesh Chander, Director (Operation) of M/s. Viora Ltd., in India. Shri Mahesh Chander in his statement dated 18.10.2013 has only stated that M/s. Viora Limited has sold the reaction machines in India at a maximum price of US$ 14,000. This has been misinterpreted by Customs to reassess the value at US$ 14,000 instead of the transaction value of US$ 10,000. Ld. Counsel further submitted that the import was from unrelated supplier and the agreed transaction value has been paid only through banking channels. In respect of pristine machines, he submitted that the declared import price of US$ 400 included accessories and consumable i.e. Advance Anti-Wrinkle Solution and Ultrasonic-cleaner 2 Nos. However, Revenue has reassessed the value of this machine by adding the price of Ultrasound Cleaner on the basis of NIDB data.

4. Ld. AR appearing for the Revenue supported the impugned order. He argued that the reassessed value was fully justified since the representative of supplier has admitted that such machines are supplied in India at US$ 14,000. In respect of pristine machine, he argued that the Ultrasound Cleaner has been shown as free of charge supply whose value needs to be added to the declared price of the basic machine.

5. In the relevant bill of entry 3 Nos. of reaction machine has been declared @ US$ 10,000 per piece. The Customs department has reassessed the value at US$ 14,000 per piece, on the basis of statement given by Sh. Mahesh Chander, Director (Operations) of M/s. Viora Limited. On going through the statement given by him to Customs officers, we find that he has clearly stated that M/s. Viora Limited was supplying such machine to the appellant @ US$ 10,000 on the basis of the MOU between them. The fact that he has mentioned that such machines have been sold at a maximum price of US$ 14,000 in India is irrelevant for the purpose of assessment. It is settled position of law that Customs authorities are bound to accept the transaction value at all times except in the case of exceptions provided specifically in Valuation Rules. The Hon'ble Supreme Court in the case of Eicher Tractors Ltd. vs. CC, Mumbai : 2000 (122) ELT 321 (SC) has unambiguously held this view. On going through the records of the case, we find that the customs department has not cited any other evidence other than the statement of the Director for disregarding the transaction value. It is very much on record that the transaction value is negotiated price and there is MOU executed by the appellant with the supplier to support this view. In the light of the above, we are of the view that reassessment of value is unjustified and needs to be set aside. Customs duty is required to be charged on the basis of transaction value in this regard.

6. In respect of Pristine Machine, Customs has not accepted the value of US$ 400 for the machine per se but has reassessed it on the basis of NIDB data. However, Ultrasonic Cleaners which has been supplied with the machine has been valued separately and added and customs duty has been demanded duty on the differential value. The submission of the appellant is that Ultrasonic Cleaners are merely to an accessories to Pristine Machine and the negotiated rate of US$ 400 is for the machine alongwith the accessories as well as some consumables.

7. It is well settled that transaction value cannot be reassessed only for the reasons that NIDB database show import of identical goods at higher value as has been held by the Apex Court in the case of Eicher

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Tractors Ltd. (supra). The transaction value is required to be accepted and can be disregarded only for specific reasons mentioned in Customs Valuation Rules. In the absence of any of those reasons, we find no reason to disregard the transaction value. Inasmuch as the consumables and the ultrasonic cleaners have been supplied as part of Pristine Machine and the price is inclusive of these items, we find no reason to disregard the transaction value. 8. In view of the above discussions, the impugned order is set-aside and appeal is allowed.
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