1992 (7) TMI 162 - AT - Customs

Summary

Issues:
The dispute involves the assessable value of Neomycin Sulphate Nonsterile.

Assessable Value Dispute:
The appellants imported Neomycin Sulphate Nonsterile from Hong Kong and declared the value at Rs. 10,50,032/-. The Collector rejected the manufacturer's invoice and enhanced the value to US $ 56 per Kg based on various quotations. The appellants contended that the manufacturer's invoice was genuine, citing the regulatory framework in China where manufacturing units are controlled by the Government. The Tribunal accepted the genuineness of the manufacturer's invoice and upheld the price at which the goods were purchased, rejecting the Collector's valuation.

Manufacturer's Invoice Authenticity:
The Tribunal considered the opinion of Solicitors and regulations governing export licensing in China to establish that the manufacturer's invoice was genuine. It was clarified that in China, manufacturing units are government-controlled, and Long March Pharmaceuticals acted as a sub-factory for Hinan Huabao Pharmaceutical Factory. The Tribunal accepted the manufacturer's invoice as genuine, highlighting the pricing details and the absence of evidence supporting the Collector's valuation.

Stock Lot Argument:
The Respondent argued that the goods were offered as a stock lot at a lower price, but the Tribunal disagreed, pointing out that subsequent details in the offer letters indicated specific pricing and delivery terms. The Tribunal found no merit in the argument that the goods were sold at a lower price due to being part of a stock lot.

Quotations and Under-Valuation:
While the Collector relied on various quotations to determine the value, the Tribunal held that quotations are not conclusive evidence and are subject to negotiations. Quotations from different sources were deemed irrelevant for assessing the value of the imported goods. Ultimately, the Tribunal allowed the appeal and set aside the Collector's order, emphasizing the authenticity of the manufacturer's invoice in determining the assessable value.