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Issues:
Whether the 5% rebate on freight given to the appellant by the Shipping Lines is admissible for deduction to determine the assessable value of imported goods under Section 14 of the Customs Act, 1962. Analysis: The appeal pertains to M/s. Bharat Heavy Electricals Limited, Bombay, challenging the order of the Appellate Collector of Customs, Bombay. The central issue is the admissibility of a 5% freight rebate granted by Shipping Lines to the appellant in calculating the assessable value of imported goods. The appellant contends that the rebate, received due to offering a significant volume of cargo, should be considered a competitive business practice. The respondent argues that the rebate was special and not given outright at the time of booking, thus not eligible for deduction under Section 14 of the Act. During the proceedings, a letter from the Ministry of Shipping & Transport, Government of India, dated 22nd February 1983, was presented, outlining the background of the freight rebate. The letter detailed an agreement with the India-Pakistan-Bangladesh Conference, granting rebates for specific types of shipments. The appellant justified the rebate as obtained under competitive conditions, emphasizing similar allowances by the Government of India in prior cases. Conversely, the respondent contended that the rebate was unique and not provided upfront, making it ineligible for deduction under Section 14. The Tribunal analyzed the situation in light of Section 14, which deems the assessable value as the price at which goods are ordinarily sold in international trade, with no business interest between buyer and seller. Considering the appellant's substantial cargo volume led to the rebate agreement, the Tribunal concluded that the rebate was part of international trade practices. The timing of the rebate's realization did not affect its admissibility, as it was known to be forthcoming at the cargo booking stage. Consequently, the Tribunal allowed the appeal, overturning the previous order and directing consequential relief for the appellants based on this decision.
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