2013 (9) TMI 1024 - AT - Customs

Summary

Issues involved:
The issues involved in this case are the examination of the genuineness of an addendum to the original MOA, the validity of price reduction claimed after importation, and the interpretation of Section 14 of the Customs Act, 1962.

Examination of Genuineness of Addendum:
After the appellant's appeal was remanded back to the Tribunal by the Supreme Court, the case was transferred to the Ahmedabad Bench. The appellant argued that the genuineness of the addendum to the original MOA needed to be examined. The appellant presented details from the original MOA dated 19-11-1997, highlighting the vessel's description. The appellant contended that upon discovering the double skin nature of the vessel's side tanks, negotiations led to a reduced value based on an addendum dated 8-12-1997. Various certificates and documents were presented to support the appellant's case, including a surveyor's certificate and a bank certificate confirming the reduced payment made by the appellant to the seller. The Tribunal examined the details provided and accepted the appellant's explanation, leading to the allowance of the appeal.

Validity of Price Reduction Claimed After Importation:
The respondent argued that the price reduction claimed after importation was impermissible under Section 14 of the Customs Act, 1962, citing a previous judgment. However, the Tribunal, after considering the Supreme Court's directions to examine the genuineness of the addendum, reviewed the facts presented by the appellant. The Tribunal noted discrepancies in the vessel's description between the original MOA and the Trim & Stability booklet, supporting the appellant's argument for a reduced price due to unforeseen circumstances post-importation. The Tribunal concluded that the appellant had valid grounds for renegotiating the price, and the reduced amount paid was genuine and acceptable for assessment purposes, distinguishing the case from the precedent cited by the respondent.

Interpretation of Section 14 of the Customs Act, 1962:
In analyzing the case, the Tribunal referred to Section 14 of the Customs Act, 1962, which pertains to the value of imported goods for assessment. The Tribunal emphasized that the actual transaction value paid as per the addendum dated 8-12-1997 was genuine and should be considered for assessment, aligning with the principles outlined in the Customs Act. The Tribunal highlighted that it would be unjust to require the importer to pay customs duty based on an amount higher than the actual consideration for the transaction. By applying the provisions of the Customs Act and considering the specific circumstances of the case, the Tribunal allowed the appeal filed by the appellant, granting consequential relief as deemed necessary.