1998 (7) TMI 152 - AT - Customs

Summary

Issues:
1. Refund claim for excess duty paid due to reduction in price of imported goods.
2. Dispute regarding valuation of goods based on revised invoice after post-clearance inspection.
3. Acceptance of revised invoice as assessable value for customs duty calculation.

Analysis:

Issue 1: Refund claim for excess duty paid
The appellant filed a refund claim for the excess duty paid due to a reduction in the price of imported goods after discovering that the size of the coke was below the agreed specifications. The appellant argued that the revised invoice value, reflecting the reduced price after negotiation with the supplier, should be considered as the transaction value of the goods for customs duty calculation.

Issue 2: Dispute regarding valuation based on revised invoice
The Customs authorities rejected the refund claim, stating that the post-clearance inspection conducted by a private agency without involving Customs officials did not provide sufficient proof that the goods tested were the same as those imported. The authorities also highlighted that the revised invoice, issued after the goods were cleared, was based on a post-clearance agreement and compromise between the parties to avoid litigation.

Issue 3: Acceptance of revised invoice as assessable value
The Tribunal upheld the Customs authorities' decision, emphasizing that the revised invoice, reflecting a reduced price as a compromise between the parties, cannot be considered the transaction value of the goods for duty assessment. The Tribunal noted that the supplier did not admit to the appellant's claim regarding the size discrepancy in the imported goods, indicating that the price reduction was part of a mutual agreement to settle disputes and not an acknowledgment of fault.

In conclusion, the Tribunal found no reason to interfere with the Customs authorities' decision to reject the refund claim, as the revised invoice issued after post-clearance inspection and negotiation between the parties could not be accepted as the assessable value for customs duty calculation. The appeal was accordingly rejected, upholding the impugned order.