2013 (11) TMI 701 - AT - Customs

Valuation - Stay application - Export of consignment of Iron Ore - Additional duty confirmed against the appellant on the ground that duty liability is to be discharged on the basis of load Port analysis - Lower appellate authority directed the adjudicating authority to finalize assessment on the basis of final invoices and the Bank Realization Certificate - Held that - buyer and seller are not related. It is also not a case of the department that the respondent has realized any amount more than what is indicated in the final invoice price which has been received by them through the Bank. In other words the price actually paid for the goods exported was the price realized by them as per the final invoice and as per the Bank certificate and that is the transaction value on which duty liability has to be discharged - Stay denied.

Summary

Issues:
- Dispute over the valuation of exported goods for duty calculation based on load Port analysis versus discharge Port analysis.
- Interpretation of Section 14 of the Customs Act, 1962 regarding transaction value for duty assessment.

Analysis:
1. Valuation Dispute:
The appeal and stay application were filed by the Revenue against an order passed by the Commissioner of Central Excise & Customs (Appeals) concerning the assessment of additional duty demand on a consignment of Iron Ore exported by M/s. V.G.M. Exports. The Revenue contended that duty liability should be determined based on load Port analysis, while the respondent argued that they had discharged the duty based on the final invoice price, which is the transaction value under Section 14 of the Customs Act, 1962.

2. Interpretation of Section 14:
The Tribunal analyzed Section 14 of the Customs Act, 1962, which states that the value of exported goods for duty purposes is the transaction value, i.e., the price actually paid or payable for the goods when sold for export from India. The Tribunal noted that in this case, the buyer and seller were not related, and the price paid by the foreign buyer as per the final invoice and Bank Realization Certificate was the price realized by the respondent. As per the transaction value principle, the duty liability should be discharged based on the actual price paid for the exported goods.

3. Decision:
After considering the arguments from both sides and the provisions of the Customs Act, the Tribunal concluded that the duty liability should be determined based on the transaction value as per the final invoice price, which was the actual amount paid for the exported goods. The Tribunal found no merit in the Revenue's appeal and dismissed it, thereby upholding the lower appellate authority's decision. The stay application was also disposed of accordingly.

In summary, the Tribunal ruled in favor of the respondent, emphasizing that the duty liability for the exported goods should be calculated based on the transaction value as per the final invoice price, in accordance with Section 14 of the Customs Act, 1962. The decision highlights the importance of considering the actual price paid for goods in determining duty liability and upholding fair trade practices.