9911796707
|
Home
Issues involved: Challenge against the order passed by the Commissioner of Customs (Appeals) dated 1-11-2001 regarding the assessment of Brass Scrap and Copper Scrap based on declared invoice value versus London Metal Exchange (LME) prices.
Issue 1 - Assessment based on LME prices: The appellant filed Bills of Entry for Brass Scrap and Copper Scrap, which were assessed at declared invoice value. Subsequently, additional duty was demanded based on LME prices being higher than the declared prices. The appellant contended that the assessable value cannot be enhanced solely based on LME prices without contemporaneous import evidence. The lower authorities rejected this contention citing a previous Tribunal decision. The appellant argued that the theoretical price from LME cannot be accepted without corroborative evidence of import prices, as supported by previous Tribunal cases. The Tribunal found that the assessment was solely based on LME Bulletin without evidence of imports at similar prices, which is impermissible under law. Consequently, the impugned order was set aside, and the appeal was allowed. Issue 2 - Contemporaneous import evidence: The Deputy Commissioner's order mentioned contemporaneous imports at similar prices to those for which demand notices were raised. However, no details of such imports were provided to the appellant or the Tribunal during the appeal hearing. The appellant emphasized that the value determination should be based on contemporaneous import evidence, as seen in previous Tribunal cases. The Tribunal noted that in the absence of material regarding contemporaneous imports, the assessment solely on LME prices was not legally permissible. Therefore, the impugned order was overturned, and the appeal was granted.
|
