2005 (2) TMI 214 - AT - Customs

Summary

Issues: Revenue appeal against allowance of "Industrial rebate" for valuation purposes.

Analysis:
1. Issue of Lower Price in Invoice:
The Revenue appealed against the order allowing "Industrial rebate" for valuation purposes, arguing that the invoice showed a lower price than the one in the purchase order. They contended that the importers received an 'industrial quantity rebate' and lower price due to a change in foreign exchange rate, which they claimed were not admissible as uniform trade discounts. However, the respondents explained that the suppliers themselves reduced the price post the purchase order, as evidenced by the suppliers' letters. The suppliers clarified that the reduction in price in the form of "industrial rebate" was extended to all customers, not just the respondents. The suppliers, acting as traders, received the rebate from the manufacturer and passed it on to the customers.

2. Evaluation of Arguments and Case Records:
After hearing both sides and examining the case records, the Tribunal found that the invoice indeed displayed a lower price. The clarification from the suppliers, received before the date of import and issuance of the invoice, supported the fact that the reduction in price was not a post-importation claim. The suppliers' letter dated 26-5-1993 confirmed that the reduction was offered to all customers, not exclusively to the respondents. Additionally, the suppliers verified the actual amount received from the buyers. Based on these findings, the Tribunal concluded that the declared value, though lower than the purchase order value, represented the actual price paid by the respondents. Consequently, the Tribunal upheld the impugned order, rejecting the Revenue's appeal.

In conclusion, the Tribunal dismissed the Revenue's appeal, affirming the allowance of the "Industrial rebate" for valuation purposes based on the actual price paid by the respondents as indicated in the invoice and supported by the suppliers' explanations and confirmations provided in the case records.