2004 (10) TMI 193 - AT - Customs

Summary

Issues:
- Discrepancy in the declared price of imported goods.
- Use of Platt's price list for enhancing the value of imported goods.
- Interpretation of the contract between the supplier and the appellant.

Analysis:
The appellant imported Linear Low Density Polyethylene (LLDPE) and declared the price as US $465 PMT, but the Custom authorities increased it to US $580 PMT based on Platt's price list and the manufacturer's price list. The appellant argued that the contract with the supplier in August 1998 was for US $465 PMT, supported by a supplier-issued certificate showing a lower price in August 1998. They contended that Platt's price should not dictate the value enhancement. The appellant cited a Tribunal case (Adani Exports Ltd. v. CCE) upheld by the Supreme Court, where it was ruled that Platt's price cannot be the basis for value enhancement.

The Revenue, however, claimed that the supplier's certificate showed US $580 PMT in November 1998, aligning with the import timing, justifying the value increase. The Tribunal noted the contract between the supplier and the appellant in August 1998 for US $465 PMT, supported by a supplier-issued certificate showing a lower price during that period. Citing the Adani Exports Ltd. case, the Tribunal emphasized that Platt's price cannot be used to enhance the value of imported goods. Given the supplier's certificate indicating a lower price than declared by the appellant in August 1998, the Tribunal set aside the impugned order and allowed the appeal.