Declared Import Value of Melamine from China Not Fraudulent: CESTAT Quashes ₹64 Lakh Anti-Dumping Duty Demand

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has quashed an anti-dumping duty demand on the import of melamine from China. The tribunal found that the declared import value was not fraudulent. The customs department had alleged that the importer had undervalued the goods to evade the anti-dumping duty. However, the CESTAT, after examining the evidence, concluded that the department had not been able to prove any fraud or misdeclaration on the part of the importer. The tribunal held that in the absence of any concrete evidence of undervaluation, the declared transaction value must be accepted. This ruling is a significant relief for the importer and underscores the principle that an anti-dumping duty demand cannot be sustained on mere suspicion and must be backed by credible proof of fraudulent activity by the importer.