9911796707
TMI Blog1998 (11) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... under a forward contract on the specified price but finally paid for on an amended basis, represents a true transaction value under Section 14 Customs Act, 1962 and Customs (Valuation) Rules. 4. Facts not disputed are as follows :- 1. The Respondent entered into a contract with Metal Distributors (U.K) Ltd. London for supply of about 500 MT of Copper Anodes of Zambia origin. The contract specifically provided that the price shall be LME grade Copper cash settlement price average over the quotation period. The QP was defined as second month following the month of arrival of vessel at Chennai Port. The goods arrived in India and were covered by Invoice No. 002783 dated 30-4-1996 and Bill of Lading dated 30-4-1996. The respondent herein ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermined and `futuristic . However, the following essential conditions of Section 14 of Customs Act, 1962, have to be taken into consideration in accepting the forward contract price. (a) Time and place of importation in the course of International trade. (b) Price at which goods are offered for sale for delivery at the time and place of importation. The forward contract does not conform to the above, as the price at the time and pace of delivery in India is not ascertainable and it is also not the price in the course of international trade, since the relevant time of import being futuritive . Hence, forward contract price are not acceptable in view of the fact that the essential conditions under Section 14 of C.A., 1962 are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing it form US $ 200 to US $ 100 per MT by the lower Authority is based on presumption and therefore, not correct. However, the lower authority analysed this aspect in detail in the Order-in-Original. It was stated that, to bring out a copper cathode from copper scrap, two process/stages are involved viz, anode stage and cathode stage. Since the copper anodes imported in the present case have to undergo the second stage only, the lower authority had reduced the quantum of discount from US $ 200 to US $ 100. Therefore, the learned Commissioner s findings to allow discount of US $ 200 per MT is not based on facts and may therefore be set aside. (7) The order of the learned Commissioner (Appeals) to assess the value of the goods on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to goods imported which were Copper anodes (of less purity) and hence not identical or even similar; and (vi) that reduction of discount of US $ 200/MT to US $ 100/MTwas arbitrary and without any evidence or logical basis. 8. Therefore, the order impugned had no infirmity and Revenue s appeal was required to be rejected. 9. We have carefully considered the arguments on both sides and the records of the case and find as under : (i) the respondents were forced to re-negotiate the original contract as the Custom House did not accept the system of Forward contract and the provisional invoice and goods could not be cleared, even on provisional assessment, thus leading to an impasse faced by the respondents; (ii) there is no evidence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch fraud is forthcoming on record; (viii) that there is no breach of contract, because the buyer and seller had agreed to the re-negotiated terms. Thus there is an amendment to the contract, but not a breach; (ix) that the only reason given by original authority for reducing the discount of US $ 200/MT to US $ 100/MT was that from copper scrap, the anode stage had been reached. Since the contract was not for copper scrap, but for copper anodes, this reason does not hold good. The lower authority admittedly had not noticed any contemporaneous import of copper anodes at Chennai port at a higher price or otherwise. Therefore, the conclusions in order impugned have no infirmity on this count. (x) that in view of these findings above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
