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Issues:
1. Assessment of value for customs duty on imported raw petroleum coke. 2. Consideration of reduction in price for moisture and ash contents discrepancy. 3. Acceptance of negotiated price for goods with different specifications than the purchase order. Issue 1: Assessment of value for customs duty on imported raw petroleum coke The appeals in question revolve around the assessment of the value for customs duty on raw petroleum coke imported by the appellant. The consignments imported were provisionally assessed pending chemical tests and production of original documents. The appellant contended that the price should be reduced based on the moisture and ash contents specified in the purchase order. The Assistant Commissioner and the Commissioner (Appeals) did not accept this contention, leading to the appeal. Issue 2: Consideration of reduction in price for moisture and ash contents discrepancy In the first appeal, the contract between the appellant and the supplier specified conditions for the purchase of raw petroleum coke, including provisions for moisture and sulphur content. The appellant requested a reduction in price due to excess moisture in the coke supplied by one refinery. The authorities initially denied this reduction, citing lack of timely information about the discrepancy. However, the Tribunal found that the test report by SGS Singapore Pte. Ltd. was valid, and the reduction in price was justified based on the contract between the buyer and the seller. Issue 3: Acceptance of negotiated price for goods with different specifications than the purchase order The second appeal involved a situation where the specifications of the raw petroleum coke supplied by the seller did not match those in the purchase order. The appellant negotiated a reduced price with the supplier, but the authorities declined to accept this reduced price for customs valuation. The Tribunal observed that the goods supplied met the agreed specifications, and the reduction in price lacked a clear justification. The absence of a valid reason for the price reduction led the Tribunal to uphold the initial price specified in the invoice for customs valuation. In conclusion, the Tribunal allowed the first appeal regarding the reduction in price for excess moisture content and dismissed the second appeal due to the lack of justification for the negotiated price reduction. The judgment emphasizes the importance of adhering to contractual specifications and providing clear reasons for any deviations in price negotiations in customs valuation matters.
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