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2010 (8) TMI 337 - AT - CustomsValuation contemporaneous import - price of EURO 8.65 per piece of gas meters was secured by the assessees after protracted negotiations with the supplier for the price reduction - manufacturer had invoiced the same goods to the present supplier at EURO 6.10 for 38000 pieces - Commissioner (Appeals) has held that the contemporaneous unit price of EURO 22 of a small sample consignment need not be considered - Department has not adduced sufficient grounds for dislodging the finding of the lower appellate authority in accepting the transaction value of EURO 8.65 per piece of the goods - Department has not adduced sufficient grounds for dislodging the finding of the lower appellate authority appeal rejected
Issues:
1. Discrepancy in declared unit price for clearance of gas meters. 2. Rejection of transaction value and enhancement of value by the Department. 3. Appeal by the Revenue against the Commissioner (Appeals) decision. 4. Contemporaneous unit price consideration. 5. Grounds for accepting transaction value of EURO 8.65 per piece. Issue 1: Discrepancy in declared unit price for clearance of gas meters The assessees filed a Bill of Entry declaring the unit price for gas meters as EURO 8.65 C&F, while the Department noted that a similar item was cleared at EURO 22 C&F from the same supplier. This led to the enhancement of the value to EURO 22 C&F, resulting in a discrepancy in the declared unit price. Issue 2: Rejection of transaction value and enhancement of value by the Department The Department rejected the transaction value of EURO 8.65 per piece of gas meters declared by the assessees and enhanced it to EURO 22 C&F based on the clearance of a similar item at a higher price. This rejection of the transaction value by the Department was a key point of contention. Issue 3: Appeal by the Revenue against the Commissioner (Appeals) decision The Commissioner (Appeals) set aside the loading of value and accepted the transaction value of EURO 8.65 per piece. This decision prompted an appeal by the Revenue challenging the Commissioner's ruling, leading to the matter being brought before the Appellate Tribunal CESTAT, CHENNAI. Issue 4: Contemporaneous unit price consideration The Commissioner (Appeals) considered the contemporaneous unit price of EURO 22 for a small sample consignment but ultimately held that the negotiated price of EURO 8.65 per piece should be accepted. The consideration of contemporaneous unit price was a significant aspect in determining the correct valuation of the gas meters. Issue 5: Grounds for accepting transaction value of EURO 8.65 per piece After evaluating the evidence, including the transparent negotiations between the assessees and the supplier, and the manufacturer's invoiced price to the supplier, the Appellate Tribunal upheld the transaction value of EURO 8.65 per piece. The Tribunal found that the Department did not provide sufficient grounds to dispute the lower appellate authority's decision, leading to the rejection of the appeal by the Revenue. This detailed analysis of the judgment highlights the key issues involved in the case, the arguments presented by both sides, and the ultimate decision of the Appellate Tribunal in upholding the transaction value declared by the assessees for the clearance of gas meters.
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