Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: empanelment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: ACCOUNTING STANDARDS :: form 3cd :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT RATES :: cpt
« News Headlines »
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide
  Central Goods and Services Tax (Second Amendment) Rules, 2018
 Income Tax Return Filing Deadline: Waiver On LTCG Tax To End On 31 March. Details Here
 Income tax returns (ITR) filing: Top mistakes that can be very costly
 Income Tax Return (ITR) filing: 6 last-minute things you can still do to save tax for FY17-18

SC puts onus of proof for under-invoicing on Customs
July, 13th 2007

The Supreme Court has ruled that Customs authorities cannot outrightly reject invoice of imported goods on charges of under-invoicing. The onus of proving under-invoicing lies with the department and this should be backed by date on the prices of contemporaneous imports of like goods.

A bench comprising Justice SH Kapadia and Justice BS Reddy said: Casting suspicion on invoice produced by the importer is not sufficient to reject it as evidence of value of the imported goods. Under valuation has to be proved. If the charge of under-valuation cannot be supported either by evidence or information about comparable imports, the benefit of doubt must go the importer. If the department wants to allege under-valuation, it must make detailed inquiries, collect material and also adequate evidence. When under-valuation is alleged, the department has to prove it by evidence or information about comparable imports. For proving under-valuation, if the department relies on the declaration made in the exporting country, it has to show how such declaration was procured, said Justice Kapadia.

The apex court said that the departments rejection of the invoice produced by the importers must be accompanied with cogent reasons. This was because the invoice price forms the basis of the transaction value.

Before rejecting the transaction value as incorrect or unacceptable, the department has to find out whether there are any imports of identical goods or similar goods at a higher price during the period of import. Unless the evidence is gathered in that regard, the question of importing Section 14 (1A) the Customs Act does not arise, court said. Section 14 (1A) deals with the determination of valuation of goods for the purposes of assessment.

In the absence of evidence, the invoice price has to be accepted as transaction value. Invoice is the evidence of value, noted the court. However, once the department discharges the burden of proof to the extent by producing evidence of contemporaneous imports at higher price, the onus shifts to the importer to establish that the invoice relied on by him was valid, court said.

The court dismissed the appeal of Kolkatas commissioner of customs. The department had demanded imposition of differential duty as well as fine and confiscated goods on charges of under-voicing by an importer South India Television (P) Ltd. The company had imported consignments of ceramic capacitors and diodes from Hong Kong. The department had issued show cause notice seeking reasons as to why the value of the consignments in question should not be enhanced alleging its under-voicing in order to evade huge government revenue.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions