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Issues involved: Determination of assessable value of imported goods u/s 14(1) of the Customs Act, 1962 based on negotiation with foreign supplier and applicability of special discount.
Summary: Issue 1: Negotiation with Foreign Supplier for Assessable Value The case involved imported goods described as stainless steel plates @ US $ 1875 PMT CIF, with a contemporaneous import of identical goods at US $ 2200 PMT CIF. The Additional Commissioner enhanced the value to US $ 2200 PMT, but the importer succeeded in appeal claiming a special price negotiated with the supplier. The Tribunal noted the absence of evidence supporting negotiation and held that the special discount offered was not admissible under Section 14(1) of the Customs Act, 1962. Citing precedent in Coimbatore Pioneer Mills Ltd. v. Commissioner of Customs, the Tribunal upheld the enhancement to US $ 2200 PMT CIF, setting aside the impugned order and allowing the appeal. Issue 2: Admissibility of Special Discount in Assessable Value The Tribunal found that there was no material on record establishing the transaction value based on negotiation with the foreign supplier. It was determined that the importers had confirmed offers from various suppliers at higher prices, ranging from US $ 1950 PMT CIF to US $ 2260 PMT CIF from Korea and Japan. Consequently, the Tribunal upheld the enhancement of the unit price to US $ 2200 PMT CIF as ordered by the Adjudicating Authority, emphasizing that the special discount was not permissible under the law for determining the assessable value u/s 14(1) of the Customs Act, 1962. (Pronounced in Court)
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