9911796707
TMI Blog1997 (1) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... nts had entered into a contract with the Indentors M/s. Chem Pack Corporation, Bombay on 9th December, 1987. The goods were imported against a valid Letter Credit No. 1/82/CB/3, dated 4th January, 1988. When the Bill of Entry was presented, the Customs authorities did not accept the price and increased the price to US $ 1,310 per M.T. They based their valuation on the basis of two consignments imported by M/s. Sumitra Plastics Ltd., Secunderabad from M/s. Nagin Marketing Co., Dubai. These two consignments have been referred to in the Bill of Entry on the basis of the invoices. The two Bills of Entry referred to in the order are Bill of Entry No. 1024/404, dated 3rd March, 1988 and Bill of Entry No. 013335/467, dated 29th April, 1988. The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 10-6-1988 for supply of the goods at the price accepted on 9-12-1987. No findings have been given by the lower authorities with reference to these letters and the explanation contained therein. The appellants have further pleaded that due to scarcity of HDPE in the international market appellants could not cancel the contract though delivery was delayed and they had to bear with the delay. They have also pertinently pointed out that L/C can be extended with the consent of both the parties and that such modification L/C does not ipso facto annul the contract. These submissions find support in the Calcutta High Court decision reported in 1992 (60) E.L.T. 43, Sneha Traders v. Commissioner of Customs. That was also a case where there was dela ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conclusion the Calcutta High Court noted that similar view had been taken by the Bombay High Court in the case of Kishko Cutlery Ltd. v. UOI - 1984 (15) E.L.T. 367. Both these judgment have been relied upon by the ld. Counsel for the appellants. It is not the Department s case that the price in this case is the result of any special relationship between the appellants and foreign manufacturer. In the same judgment of Calcutta High Court it is further observed that the mode and terms of payment are purely contractual matters and are decided and agreed upon by the parties and the same cannot invalidate a contract in any way. The authorities should take into account the facts and circumstances of international trade and commerce, the High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X
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