2004 (9) TMI 212 - AT - Customs

Summary

Issues:
- Appeal against the enhancement of assessable value of imported goods based on PLATT price
- Interpretation of Customs Valuation Rules and Section 14 of the Customs Act
- Validity of using PLATT prices for valuation of reprocessed/recycled LDPE
- Application of exceptions in Rule 4(2) of the Customs Valuation Rules
- Contemporaneous import evidence requirement for valuation

Analysis:
The appeal pertained to the enhancement of assessable value of imported goods by the Commissioner (Appeals) based on PLATT price. The appellant imported recycled/reprocessed LDPE at a declared value of US $380 to US $390 per MT. The Assistant Commissioner enhanced the value to Rs. 28,80,135/- based on PLATT price, allowing deductions for inferior quality. The appellant argued that the Revenue disregarded Customs Act Section 14 and Rule 4(2) of the Valuation Rules, emphasizing the necessity of evidence for special circumstances affecting transaction value. Citing the Supreme Court decision in Eicher Tractor Ltd. v. CCE, Mumbai, the appellant contended that unless prices fall within Rule 4(2) exceptions, duty must be assessed on transaction value.

In response, the Departmental Representative supported the impugned order, highlighting the fluctuating nature of PLATT prices for polymers as internationally accepted valuation standards. The Tribunal analyzed the Customs Valuation Rules, emphasizing that the transaction value should be accepted unless falling under Rule 4(2) exceptions. Noting the absence of evidence for contemporaneous imports, the Tribunal found the Revenue's use of PLATT prices for virgin plastics as base unjustified for recycled/reprocessed LDPE. Relying on the Deejay Plastics case, the Tribunal held PLATT prices as compilations of price ranges, not transaction values, and region-specific, not suitable for alternate transaction values.

Consequently, the Tribunal allowed the appeal, asserting the transaction value as the assessable value for Customs duty assessment. By aligning with previous decisions, the Tribunal rejected the Revenue's reliance on PLATT prices for valuation, emphasizing the need for transaction-specific evidence and adherence to Customs Valuation Rules exceptions.