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TMI Blog2006 (6) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... ecifies that the price payable shall be for Lead and Silver metal contents as detailed below after deduction of treatment charge and agreed penalties : - Lead : 95% of the actual lead content in the concentrate (minimum deduction 3 units per DMT) payable at LME cash settlement price for each market day averaged for Lead as published in the Metal Bulletin , London for the quotational period. Silver : (if any): 95% of the actual silver content in the concentrate (minimum deduction 30 grams per DMT) payable at London Spot (in US Dollars) quotations averaged for the quotational period. 2. We find that the rationale for the terms of the contract has been explained by the appellants in a letter dated 23-7-99 to the original authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Bulletin at 548 US$ and the price of Polish origin was taken as 540 US$. In the first case, the lead percentage was 72% and in the second it was 73.73%. The final invoice has been worked out taking percentage of lead as 72.326% in the first case and 74.018% in the second case. However, the final price has been calculated on the basis of lead price @ 516.38 US$ as per the terms of the contract which specifies that the price is to be adopted for the quotational period, which is specified in the contract as the month after the month of arrival of the imported cargo at the discharge Port. Though the lead percentage is slightly higher in the final invoice, on account of the lower price adopted for the quotational period as reflected in the Me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icant Commissioner challenges the impugned order-in-appeal on the ground that as per the ratio of the Hon ble Supreme Court s decision in the case of Rajkumar Knitting Mills (P) Ltd. v. CC, Bombay - 1998 (98) E.L.T. 292 (SC), the time of importation is relevant for the purpose of determination of value of the imported consignments. The learned SDR arguing for the department also relies on the said decision of the Hon ble Supreme Court in the case of Rajkumar Kintting Mills (cited supra), and states that the value should be calculated on the price of lead prevailing in the London Metal Exchange on the date of importation as reflected in the Metal Bulletin, whereas the respondents have claimed assessment on a value, which is calculated on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alue is not acceptable as the goods under import are lead concentrate comprising many other elements and the Metal Bulletin does not provide price for such a product. We also note that the contract provides for determining value for sale on the basis of a pre-determined formula based on the actual lead/silver content and prevailing price of lead/silver in the month after discharge. The terms of the contract are clear and definite and the value in each case of sale can be worked out based on these four determining factors. The terms do not also provide any scope for manipulation. The value depends on 95% of actual lead/silver month after import, which may be lower or higher, but not within the control of the buyer and seller. We note that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at it is capable of manipulation or is lower than prices of comparable goods imported at or about the same time. No such evidence has been adduced by the department. As such, we hold that the final value worked out by using the pre-determined formula provided for in the contract is acceptable as the transaction value for the transactions in question. 9. We also find that the contract itself provides for deduction towards despatch money in view of the fact that the respondents have paid the final price less of despatch money on the basis of the contract agreed to between the supplier and the importer prior to the sale transaction and since the deduction has been claimed on the actual basis, we are of the opinion that the same is allowable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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