9911796707
TMI Blog1992 (7) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... led manufacturer s invoice dated 4-7-1991, which indicated that the goods were sold @ US $ 16 to the supplier of the goods. The Collector rejected the manufacturer s invoice as not genuine on the ground that manufacturer s invoice indicates that the goods were manufactured by M/s. Long March Pharmaceutical Sub Factory whereas the manufacturer of impugned goods is M/s. Hinan Huabao Pharmaceutical Factory China. Collector enhanced the value to US $ 56 under Rule 7 read with Rule 8 of the Customs (Valuations) Rules. He also relied on quotation obtained from indenting agents viz. M/s. Chemet from M/s. Siemsgluss and Sohn GMBH Co., Hornburg, Germany. According to this quotation, the two grades - Neomycin Sulphate Sterile Micro USP and USP oral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are regulated by Export Licencing System. The manufacturing companies who have licence for export carry out export for and on behalf of such manufacturers who do not have export licence, who are termed as sub factories of licence units. M/s. Long March Pharmaceuticals have no export licence, therefore, they were the sub factory for M/s. Hinan Huabao Pharmaceutical Factory. In other words, M/s. Long March Pharmaceuticals is the sub factory of M/s. Hinan Huabao Pharmaceutical Factory. They manufactured the goods and supplied the same to M/s. Siu Hon Traders @ US $ 16 under two invoices No. 91SHS K345554 dated 2-9-1991 and No. 91SPHZ 889, dated 4-7-1991. Therefore, the finding of the Collector that the manufacturer invoice is not genuine is ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such export licence and therefore act as sub-factory for Hinan Huabao Pharmaceutical Factory China who have an export licence under the Regulations as framed by Administrative Commission on Import and Export under the Chinese Ministry of Foreign Trade it is because of this reason that the negotiations to sell neomycin sulphate is carried out by Hinan and in fact in their letter of offer dated 21st May, 1991 to Siu Hon Traders Hong Kong they have specially mentioned Long March Pharmaceutical as their sub-factory. In fact even the contract dated 4th February, 1991 between Hinan and Siu Hon mentioned that fact which is again reflected in their invoice of 2nd September, 1991. We from the above are of a definite opinion that due to such licen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of M/s. Hinan Huabao Pharmaceutical Factory, the invoice by them to M/s. Suo Hon Traders i.e. appellants supplier under their contract dated 4-7-1991 and 2-9-1991 are the manufacturer s invoices. We, therefore, accept that the invoice dated 4-7-1991 and 2-9-1991 are genuine manufacturer s invoice. Therefore, reasoning given by the Collector that the manufacturer s invoice is not genuine is based on mis-construction of the legal position and facts obtaining in China. We, therefore, are of the view that the manufacturer s invoice is genuine. From a reading of manufacturer s invoice, it is evident that the suppliers have purchased the goods at US $ 16 per Kg. Under the invoice from supplier to the appellants, the goods were sold at 20 US $ p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a lower price is without any substance. 11. In view of the foregoing, it follows that the best evidence of the price of the imported goods is available and, therefore, it is not necessary to go to other contemporaneous imports of identical or similar goods. In our view, the manufacturer s invoice represents the transaction under Rule 4 of the Rules. 12. In view of the above, though it is not necessary for us to go, into the finding of the Collector as to the under-valuation since he has referred to various quotations, we are considering those quotations to find out whether in fact there is an under-valuation. At the outset, we may point out that this Tribunal is taking a view that quotations cannot be acted upon as they are not relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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