2004 (7) TMI 586 - AT - Customs

Summary

Issues:
1. Dispute over the enhanced value of imported goods.
2. Interpretation of Standing Orders regarding discounts on imported goods.
3. Validity of the demand for differential duty based on enhanced nature of goods.

Analysis:
The appellant contested the second enhancement of the value of imported goods, arguing that it lacked a basis and the demand notice did not specify grounds for the differential duty. The adjudicating authority upheld the demand, stating that the appellants were entitled to a discount of only 35% on reprocessed granules, not the claimed 41.5%. The appellant relied on Standing Orders to support their entitlement to discounts.

The Tribunal found that the initial enhancement of the price by the customs authorities was accepted by the appellant. Subsequently, a further notice was issued for price enhancement, alleging the appellants were not eligible for a 10% discount. Referring to Standing Orders, it was established that imports from the manufacturer were entitled to a 10% discount from the PLATT Rate. An amendment to the Standing Order allowed a 35% discount on reprocessed granules, but no amendment affected the 10% discount provision. Consequently, the disallowance of the 10% discount was deemed unsustainable.

The Tribunal held that the impugned order was set aside, and the appeals were allowed. The appellants were declared entitled to consequential relief in accordance with the law. The judgment was dictated and pronounced in open court on 28-7-2004 by S.S. Kang, Member (J).