2000 (11) TMI 354 - AT - Customs

Summary

Issues: Valuation of imported glass sheets

The judgment by the Appellate Tribunal CEGAT, Mumbai, dealt with the valuation of a consignment of glass sheets imported by Maini Traders. The declared value by the importer was US $1460 per metric ton CIF, while the department argued it should be equal to pound 2903 per tonne based on the London Metal Exchange (LME) price. The Asstt. Collector enhanced the value of the goods under Rule 7 of the Customs Valuation Rules, which led to an appeal by the importer. The Collector (Appeals) accepted the importer's contention that there was no evidence of contemporaneous imports at the price sought by the department, setting aside the Asstt. Collector's order. The department then appealed this decision.

The department's appeal argued that LME prices represent the contemporary international price, citing previous Tribunal decisions. The judgment acknowledged that LME prices generally reflect international market trends and noted the rarity of the imported goods, chromium-covered brass sheets. However, it found the importer's declared value significantly lower than the LME price, raising questions. The judgment criticized the Asstt. Collector's reasoning for not accepting the transaction value based on the seller being in Singapore while the shipment was from Japan, stating this was not sufficient to reject the transaction value. Additionally, the Asstt. Collector applied the LME price of a different commodity, brass sheets, without sufficient evidence that the price relationship held true for chromium-coated brass sheets.

Ultimately, the Tribunal found the importer's declared value suspect but noted the lack of a valid reason for the substantial difference in value. As the appeal did not provide grounds for interfering with the Collector (Appeals)'s decision, the Tribunal dismissed the department's appeal, upholding the decision in favor of the importer regarding the valuation of the imported glass sheets.