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Issues involved: Assessment of the value of a vessel brought for breaking.
Summary: The appeal arose from the Commissioner of Customs (Appeals) order regarding the assessable value of a vessel brought for breaking. The vessel "M.V. Ithaki" entered Alang anchorage on 14-11-2001, and after initial agreements, a revised price was determined. The importer filed a bill of entry for home consumption at the revised price, which was rejected by the assessing officer. The Commissioner (Appeals) allowed the importer's appeal based on the MOA agreed between the seller and the appellant. The Revenue contended that the revised price post-importation cannot be the basis for valuation, emphasizing the time and place of importation in international trade. The Tribunal held that the price indicated in the initial MOA should be considered the value of the goods at the time of importation. Any reduction in price after importation is not acceptable under Section 14 of the Customs Act. The Tribunal rejected the respondent's argument that the reduced price was due to distress conditions, stating that a distress sale is not in the ordinary course of international trade. The appeal of the Revenue was allowed, setting aside the Commissioner (Appeals) order. In conclusion, the Tribunal emphasized that the value of goods in international trade should be based on the price at which they are sold in the ordinary course of trade. Any reduction in price after importation should be scrutinized carefully, and a revised price should not always be accepted if evidence suggests the real value is different. The decision of the Tribunal in this case was in line with previous rulings and set aside the Commissioner (Appeals) order.
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