2015 (4) TMI 1016 - AT - Customs

Provisional assessment - Import of LNG - whether the final assessment of the Bills of Entry would be on the basis of provisional invoice which was issued on the basis of unit price as per contract and load port quantity declared in the Bill of Lading on the basis of final invoice, which was issued on the basis of the actual quantity delivered to the Appellant at discharge port in terms of the contract with the supplier - Held that - issue is no more res integra in view of the decision of the Tribunal in the case of Commissioner of Customs, Ahmedabad Vs M/s Reliance Industries Ltd - 2014 (4) TMI 339 - CESTAT AHMEDABAD , whereby the Tribunal rejected the appeal filed by the Revenue. It has been observed that the assessable value would be determined on the basis of quantity of LNG discharged in India at the contracted price arrived on the basis of an agreement. - No reason to interfere with impugned order - Decided against Revenue.

Summary

Issues Involved:
Whether final assessment of Bills of Entry for import of Liquified Natural Gas (LNG) should be based on provisional invoice or actual quantity delivered as per contract.

Analysis:

1. Issue of Final Assessment Basis:
The case involved a dispute regarding the final assessment of Bills of Entry for the import of Liquified Natural Gas (LNG). The Respondents had requested provisional assessment under Section 18 of the Customs Act, 1962. The main issue was whether the final assessment should be based on the provisional invoice issued according to the unit price in the contract and load port quantity, or on the actual quantity delivered at the discharge port as per the contract with the supplier.

2. Adjudication and Appeal:
The Adjudicating authority had initially confirmed the duty demand. However, the Commissioner (Appeals) later set aside this decision. Subsequently, the Revenue filed an appeal challenging the Commissioner's order.

3. Precedent and Tribunal Decision:
The Tribunal referred to a previous decision in the case of Commissioner of Customs, Ahmedabad Vs M/s Reliance Industries Ltd, where it was held that the assessable value should be determined based on the quantity of LNG discharged in India at the contracted price as per the agreement. This decision was crucial in resolving the issue at hand.

4. Judgment and Dismissal of Appeals:
After considering the precedent and the facts of the case, the Tribunal concluded that there was no reason to interfere with the order of the Commissioner (Appeals). Consequently, the appeals filed by the Revenue were rejected, thereby upholding the decision of the Commissioner.

In summary, the judgment clarified the basis for the final assessment of Bills of Entry for LNG imports, emphasizing the importance of the quantity delivered as per the contract in determining the assessable value. The decision relied on a previous Tribunal ruling and ultimately dismissed the Revenue's appeals, affirming the Commissioner's order.