Prove under-invoicing charges: SC to customs

NEW DELHI: 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 similar 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... , the benefit of doubt must go the importer.”