9911796707
TMI Blog1991 (6) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Bank with a request to open an irrevocable letter of credit for U.S.$ 33,750 in favour of the aforesaid suppliers - M/s. Bondwell International Ltd. for 25 pieces of the Lap Top Computer Model B 310 at a unit price of U.S. $ 1350. The debit advice dated 30-3-1990 for Rs. 63,000/- being 10% margin money for the letter of credit is also of the same date i.e. 30-3-1990. The said Bank has given a certificate that the credit was dispatched on 2-4-1990, though it was opened on 30-3-1990 (Annexure D to the appeal). Some amendments were carried out in the letter of credit by amending the name of the beneficiary and by incorporating a clause for interest, extension of expiry date, invoice number etc. On 19-7-1990, the appellant herein filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITC Policy AM 1990-93 would be applicable, the Collector while accepting that the letter of credit was opened by the appellant on 30th March 1990, has not extended the benefit of the old Policy on the ground that as per the said letter of credit the shipment of the goods ought to have been made by 30th May 1990. Since the shipment in this case was made in July 1990 and in view of the provisions in para 204 (6) of the AM 1990-93 Policy, extension of period of shipment in the letter of credit would amount to fresh commitment made after 30th March 1990; the Collector did not extend to the appellant the benefit of the old Policy. He, therefore, held that the ITC aspect in respect of the goods under consideration would have to be examined in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these rules the value of imported goods shall be transaction value. Clause (ii) of Rule 3 permitting recourse to the other rules is available only if the value cannot be determined under the provisions of clause (1) of Rule 3. The adjudicating authority, according to the learned consultant, has not given even a single reason as to why the transaction value cannot be accepted. 2.1 On the question of ITC angle, learned consultant, has stated that the adjudicating authority has misread the provisions of para 204 (6) of ITC Policy AM 1990-93. It has been clearly admitted by the adjudicating authority that the letter of credit was opened on 30th March, 1990 i.e. before the expiry of the previous ITC Policy i.e. AM 1988-91. Once the letter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion value under the new Valuation Rules, 1988 has to be accepted except in the circumstances referred in the proviso (a) (b) (c) (d) of sub-rule (2) and even in the case of related persons, the transaction value has to be accepted if the relationship did not influence the price or if the importer demonstrates that the declared value of the goods closely approximates to transaction value of identical goods or similar goods in sales to unrelated buyers. None of the circumstances set out in sub-rule (2) or sub-rule (3) of Rule 4 of the Valuation Rules, 1988 have been pointed out by the adjudicating authority in discarding the transaction value in the instant matter. The only reason given is that the transaction value of the identical goods imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall not be valid for import of items listed in Appendices 3, 5 Part A and 19 which were allowed to be imported against the flexibility in terms of Para 177 (1) of 1988-91 Policy Book, but are now not covered by the said Appendices of this Policy. Similarly, these REP licences shall not be valid for import of permissible non-OGL capital goods, tools and instruments importable in terms of para 177 (2) of 1988-91 Policy Book, which have been shifted to Appendices 1 Part A, 2 Part B, or 8 of this policy. However, in respect of REP licences issued prior to 1-4-1990, these restrictions will not apply to the extent the licence holders have already made firm commitments backed by irrevocable letters of credit opened and established through autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be availed of by the appellant in respect of the letter of credit opened and established on 20th March, 1990. The learned consultant in rebutting this finding of the lower authority has relied upon Tribunal s decision in the cases of (1) Gulab Impex and (2) Amar Traders, mentioned supra. We have gone through the aforesaid two citations relied upon by the learned consultant. We find that the citation relating to Amar Traders is of no relevance at all because it relates to peculiar provisions relating to Project Import licences which is not the case here. So far as Gulab Impex is concerned, we observe that the transitional provision before the Tribunal in the said case was in the following terms which is reproduced in para 8 of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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