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TMI Blog1991 (12) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ory. The laboratory while confirming that the imported goods were `Methyl Ethyl Ketone , pointed out that The analytical constants obtained here are in agreement with those mentioned in the books available for technical grade of Methyl Ethyl Ketone, wherein no minimum purity has been prescribed. 2. Enquiries made by the Department revealed that Methyl Ethyl Ketone of Dutch origin was being offered for sale to buyers in India at US$ 1350 per MT. Further Computer Printout in respect of imports through Calcutta Custom House revealed that against Bill of Entry No. 002288, dated 28-12-1990 Methyl Ethyl Ketone was imported at a price of US $ 1500 per MT C.I.F. Enquires made by the Custom House from M/s. Mon Forte International, New Delhi who represent the manufacturers M/s. Autochem, in India as their agents, revealed that the prevailing price for export of Methyl Ethyl Ketone by their principals to India was US $ 1275 C.I.F. per MT. On the basis of these enquires, in the show cause notice dated 20-2-1991 issued to the appellants, it was stated that the manufacturers price of US $ 1275 C.I.F, per MT had to be deemed as the assessable value of the goods under Rule 8 of the Customs Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant time Methyl Ethyl Ketone of Dutch origin was being offered for sale at US $ 1350 per MT and M/s. Ran Dyes Corporation and M/s. Monoports International, the Indian agents of the French manufacturers M/s. Autochem, had quoted a price of US $ 1275 per MT C.I.F. was of no relevance since it was not permissible to determine the assessable value of any imported goods on the basis of a mere quotation. He argued that the computer print out in respect of the clearance of Methyl Ethyl Ketone at Calcutta against Bill of Entry No. 002288, dated 28-12-1990 at US $ 1500 per MT C.I.F. could also not be the basis for the determination of the assessable value of the inferior quality goods imported by the appellants since there was no indication as regard the quantity and the quality of the goods covered by the relevant contract. He stated that the adjudicating authority had ignored the numerous Bills of Entry produced before him to show that identical goods were being imported during the same period at Madras at a price of US $ 512 per MT and even Cochin Custom House had arrived at the assessable value of US $ 510 per MT. He argued that in absence of any evidence to the effect that the buyer an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative of the French manufacturer M/s. Autochem and the price at which similar goods were imported at Calcutta. In support of his arguments he placed reliance on the decision of the Bombay High Court in the case of Satellite Engineering Ltd. v. Union of India Others reported in 1983 (14) E.L.T. 2177. 6. We have examined the records of the case and considered the submissions made on behalf of both sides. It is seen that the main point raised by the appellants is that the assessable value of the goods was not determinable on the basis of the quotations obtained by the Department or the computer print out in respect of a solitary transaction and the invoice price of US $ 510 MT C.I.F. in respect of the inferior quality Methyl Ethyl Ketone imported by them represented the assessable value of the goods. 7. It is seen that in the impugned order the Collector had rejected the appellant s claim that the imported Methyl Ethyl Ketone was of inferior quality. In this regard we consider it desirable to reproduce the relevant extract from the order passed by the adjudicating authority :- The department received an intelligence that Methyl Ethyl Ketone was being imported at Madras Port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that while doing so the adjudicating authority had not assigned any reason for ignoring the evidence filed in regard to innumerable imports of technical grade Methyl Ethyl Ketone at prices comparable to the prices of the disputed goods and for determining the value under Rule 8 in preference to Rule 4 and provision of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988. 8. It is seen that the finding of the Collector that the imported goods were of technical grade and not of inferior quality was based mainly on the test report of the Custom House laboratory. The appellants have contended that the copy of the test report, which was a vital document was not furnished to them despite repeated requests. In this regard it is seen that the Calcutta High Court has held in the case of Bata Shoe Company Pvt. Ltd v. Union of India and Others reported in 1978 (2) E.L.T. (J 501) that relying on Chemical Examiner s report without giving its copy to the concerned party, amounts to denial of justice. The relevant extracts from this decision are reproduced below :- In this Rule, the petitioner challenged an order of assessment passed by the respondents and prays for q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old, or offered for sale, for delivery at the time and place of importation or exportation, as the case may be, in the course of international trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale offer for sale ; Provided that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50; (1A) Subject to the provisions of sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules made in this behalf." CUSTOMS VALUATION (DETERMINATION OF PRICE OF IMPORTED GOODS) RULES, 1988 (1) ........... (2) ........... 3. Determination of the method of valuation. - For the purpose of these rules, - (i) the value of imported goods shall be the transaction value; (ii) if the value cannot be determined under the provisions of Clause (i) above, the value shall be determined by proceeding sequentially through Rules 5 to 8 of these rules." It is seen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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