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Issues involved:
The judgment involves appeals by three different companies against the orders of the Commissioner (Appeals) related to the sale of ships and the determination of assessable value under the Customs Act, 1962. Issue 1: Common Issue in Appeals The three appeals involve a common issue related to the sale of ships and the determination of assessable value under the Customs Act, 1962. Issue 2: Assessable Value Determination The original memorandum of agreement for the sale of ships was on an "as is where is basis" with an option for arbitration in case of disputes. There was no discrepancy in the items agreed upon and those actually imported. The reduction in prices through an addendum after import did not have a justifiable reason. The memorandum of agreement did not contain a price variation clause to justify such reductions. Issue 3: Precedent from Larger Bench The Larger Bench in the case of M/s. Lucky Steel Industries held that any reduction in price agreed upon before the date of import is relevant for determining assessable value. However, post-import price variations are not relevant unless there are serious breaches of contract or if the goods are not as contracted for. Decision: The Tribunal found no justifiable reason for the lower price adopted through the addendum after the import of vessels. The appellants' issue was deemed covered by the Larger Bench decision. Consequently, there were no grounds to interfere with the Commissioner (Appeals) orders, leading to the rejection of the appeals and disposal of the cross-objections.
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