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Issues:
1. Dispute over reduced price of imported vessel. 2. Interpretation of Memorandum of agreement. 3. Applicability of Tribunal decisions on price reduction. Analysis: The appeal before the Appellate Tribunal CESTAT, New Delhi involved a dispute regarding the reduced price of an imported vessel. The appellants initially agreed to a price of US $ 992887.20 for the vessel, but after import, the price was reduced to US $ 929388.60 due to the vessel being double skinned. The Customs authority rejected the revised price, leading to the appeal. The appellants argued that they paid the reduced price as agreed and there was no evidence of payment above the agreed price, making the demand unsustainable. They cited a Tribunal decision supporting assessment based on the reduced price in similar cases. On the other hand, the Revenue contended that the Memorandum of agreement stated the total sale price as US $ 929887.20 without provisions for price reduction. They referred to another Tribunal decision where price reduction post-import was not accepted. The Tribunal analyzed previous cases, noting that in instances where the agreement allowed for price reduction due to material differences, the reduction was accepted. However, in the present case, the Memorandum of agreement did not include any provision for price reduction. Citing a previous decision, the Tribunal held that without a provision for price variation in the agreement, the reduction in price post-import was not sustainable. Consequently, the Tribunal dismissed the appeal, finding no merit due to the absence of provisions for price variation in the agreement.
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