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TMI Blog2000 (11) TMI 955X X X X Extracts X X X X X X X X Extracts X X X X ..... l could not be erected there for reasons that are not clear, and the components of the mill, were not even unpacked, and were lying packed in Italy for nine years. In September, 1994, Stahlex made an offer of sale of the mill to PT Ispat Indo Indonesia, a firm that is part of the same group as the appellant. The offer was for sale of the plant, described as brand new, very modern, complete universal mill , for US $ 16 million. The offer found favour with the group, and was actively pursued. A decision was also taken to import the machine into India for use by the appellant before us. As a result of further negotiations that took place between the parties, the price was agreed to be $ 13.875 million. The plant in due course was imported, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of 10 years . 4. This conclusion is being challenged both by the Department and the importer. By an application filed under Section 129D of the Act, the Department contends that the price of a mill of like kind quality and capacity, if new would be $ 30 million, and this therefore should be a assessable value. The appellant contends that the price at which the goods were finally offered and sold $ 13.875 million should be the correct value. 5. We are not able to accept the contention in the Department s appeal. We do not think that it is proper to equate a mill, which has been lying unused for ten years, with a mill, newly built in accordance with the precise requirements of the buyer. The Department relies upon the fact that the mill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut, a price equivalent to its cost of fabrication. This is no doubt what the Collector means then he says that the cost of making this plant would have been $ 15 million. The nature of the article also has to be considered. Such plants, as the department itself says, are almost invariably fabricated on specific order, in accordance with the buyer s specifications. The fact that this plant would not be in accordance with the precise requirements of the appellant, unlike a plant that was tailor-made to suit its needs, would also have influenced its price. 6. Considering these factors in this admittedly unusual situation, we think that there is insufficient material to say that the price proposed in the department s appeal should be accepted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The importer deducted the value declared by him of the containers from the value of the machinery; he declared it to be the rupee equivalent of US $ 13.875 million less the value of the containers. In his order, the Collector comes to the conclusion the price for the plant does not include the excess of containers. He finds this cost to be Rs. 30.63 lakhs based upon the price per container of the various types of containers that were used and directs that this should be added to the value of the plant. He says, The duty now determined on the containers were much less than the duty which has already been paid on the containers. The excess duty paid on the containers may be adjusted against the duty which is now payable on the machine on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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