2001 (2) TMI 398 - Commissioner - Customs

Summary

Issues:
1. Correctness of assessable value of imported goods based on different contract prices.

Analysis:
The appeal involved a dispute regarding the determination of the assessable value of imported goods based on different contract prices. The appellant, a company importing Ethylene Di Chloride (EDC), had two separate contracts with the supplier for the supply of EDC at different prices due to market fluctuations. The Assistant Commissioner enhanced the value of one consignment from the fresh contract to match the price of a renegotiated consignment from the original contract. The appellant argued that both contract prices were genuine and based on commercial considerations, thus should be accepted as transaction value. The Commissioner considered the submissions and undisputed facts, highlighting the importance of Section 14 of the Customs Act and relevant Tribunal decisions.

The Commissioner emphasized that while the GATT Valuation Code supports valuing each shipment based on its own price, the Indian Customs Valuation System incorporates parameters from Section 14 of the Customs Act. Various Tribunal decisions, along with Supreme Court and High Court judgments, have upheld the importance of Section 14 in determining the value of imported goods. The Commissioner referenced specific cases like Crescent Corpn. of Calcutta, Indian Infusion Ltd., and Blue Star Enterprises to support this view.

Furthermore, the Commissioner discussed the significance of the Supreme Court judgment in the case of Eicher Tractors, which underscored the relevance of Section 14(1) and the clause "subject to provisions of sub-section (1)" in Customs valuation. The judgment clarified that the date of importation, not the date of the contract, is crucial in determining the value of imported goods. The Commissioner also highlighted the applicability of Rule 10A, emphasizing its prospective effect and its inapplicability to imports predating its enforcement.

In conclusion, the Commissioner set aside the Order-in-Original and directed the acceptance of the transaction value for the subject consignment. The decision was based on the detailed analysis of relevant legal provisions, Tribunal decisions, and the Supreme Court judgment, ensuring adherence to the Customs valuation rules and principles.