9911796707
TMI Blog1999 (9) TMI 876X X X X Extracts X X X X X X X X Extracts X X X X ..... (Singapore) Pvt. Ltd. They also produced import licence for a value of Rs. 14,83,140/- for clearance of the goods. However, the consignment appeared to be under valued to the Customs Authorities and they were prima facie of the view that the correct CIF price ought to be US $ 900 per M.T. The value was, therefore, enhanced to Rs. 32.46 per Kg. i.e. US $ 900 per M.T. and the consignment was assessed at the enhanced value of Rs. 25,97,040/- under Order-in-Original No. C.C-I/VS/I.C.D./9/97 dated 28-4-1997. The order also noted that the importer accepted the enhanced value during personal hearing. The consignment was also confiscated on charge of undervaluation under Section 111(m) of the Customs Act and the import licence produced not covering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant provisions of the Customs Act at all. In the present case the assessment should have been done at the transaction value as no evidence has come on record to show that the transaction value was not in conformity with Section 14 of the Customs Act. It has not been shown in any way that the transaction value is not the price actually paid for payable for the goods when sold for export to India or that any adjustment is required to be made in the transaction value in accordance with Rule 9 of Customs Valuation Rules. No evidence has also been brought on record to show that the transaction value has been vitiated on account of any extra considerations. They have relied on the judgment of the Hon'ble High Court of Kerala in the case of K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (86) E.L.T. 85 (T) 3. On the contrary it has been submitted on behalf of Revenue that Section 14 of the Customs Act specifically permits offer price being a valid basis for assessment. This position has also been accepted by the Bombay High Court in its decision in the case of Satellite Engineering Ltd. v. Union of India & Others reported in 1987 (31) E.L.T. 356. With regard to the debit of higher value from import licence, the Revenue has referred us to the following decisions : 1. 1990 (45) E.L.T. 249 para 30 2. 1989 (39) E.L.T. 630 3. 1984 ECR 631 4. 1988 60 ECR 475 4. In the instant case, the value of the goods was enhanced, originally, because of a prima facie view of the Customs authorities that US $ 900 per M.T. ough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case. There is also no evidence of contemporaneous imports of identical or similar goods at a higher price. The two documents produced in no way represents contemporaneous imports. The letter dated 15th October is a mere quotation and there is no evidence to show that an actual import took place at that price contemporaneously with that of the appellants. The second document is merely a compilation of data about prices of selected Asia/ Pacific products. The U.N. Publication itself appears to be of October, 1996 but is not with reference to any particular transactions. Further, it is not applicable to Zanzibar cloves as no price is given of that product. The appellant, therefore, forcefully contends that the transaction value as represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue. It is only if the transaction value cannot be determined, then the value can be determined by proceeding sequentially through Rules 5 to 8." "11. The Commissioner of Customs relied upon the proforma invoice said to have been issued by a different company in Singapore. Proforma invoice is nothing more than a tentative statement of the seller for sale of the goods at the price mentioned therein. Until the buyer accepts it and enters into the actual transaction of sale and purchase, there can be no presumption that the goods must have been sold at that price. Such quotations or proforma invoices are not relevant evidence in the absence of an actual import in pursuance of the quotation. They are in the nature of offer and there is scope f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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