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TMI Blog2016 (2) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... tween the first international transfer of goods to the last transaction. In the instant case, it is clearly established that M/s ACCIL has entered into the sales agreement with the other appellants and had not furnished the details to Customs authorities, but raised the debit notes and recovered higher amounts from their buyers. Demand of duty confirmed with penalty invoking extended period of limitation - Decided against the assessee. - Appeal No. C/255,278,291,292,297,298,302,303/2008 - Order No. A/10082-10089/2016 - Dated:- 8-2-2016 - Hon ble Mr. P. K. Das, Member ( Judicial ) And Hon ble Mr. P. M. Saleem, Member ( Technical ) For the Appellant : Shri Anand Mishra, Advocate, Shri N.K. Tiwari, Shri R.R. Dave, Consultants, Shri Paritosh Gupta, Advocate For the Respondent : Shri S. K. Shukla, A.R. ORDER Per: P.M. Saleem All these appeals involve a common issue and are filed by the Appellants, aggrieved by the common impugned order. Hence, all are taken up together for disposal. 2. The brief facts of the matter in nut shell are that M/s Asiatic Colour Chem Industries Ltd, Ahmedabad (100% EOU) (ACCIL for short), imported six consignments of H. Acid and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of Board s Circular No.32/2004-Cus, dt.11.05.2004. He relied upon the case law in this regard in the case of Metro Marine Services Pvt. Ltd. Vs Commissioner of Customs, Kandla 2008 (223) ELT 227 (Tri-Che). 5. The learned Consultant Shri N.K.Tiwari appears for M/s Bodal Chemicals P. Ltd, M/s Hind Prakash International Trading P. Ltd and M/s Manish Chemicals. The ld.Consultant submits that in regards to M/s Bodal Chemicals P. Ltd, they had cleared the consignment by way of debiting the duty amount in the advance licence (DEEC). Subsequently, on demand of differential duty by the Department on account of the debit note, they have paid the concerned duty by way of cash during the investigation itself and before issue of Show Cause Notice. He further submits that the advance licence had sufficient unutilised credit as on the date of import of the goods and therefore, they did not stand to gain by evading duty. He also contends that they had taken up the matter with the Adjudicating authority during the time of adjudication. However, the Adjudicating authority observed that they had not taken up the issue of paying the differential duty by way of debiting the advance licence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Counsels and the learned Consultants also submitted that the extended period of limitation cannot be invoked in their cases as the appropriate duty liability was discharged on a bonafide belief and they relied upon the Board s Circular No.32/2004-Cus, dt.11.05.2004 to establish the bonafide belief. It was also submitted that in the case of M/s Manish Chemicals, M/s Monarch Dyestuff Industries Ltd and M/s Loxim Industries Pvt. Ltd, since the goods were cleared under advance licences, there is no intention to evade duty as they had sufficient balance in their licences. They had also submitted that the goods were already cleared and they are not available for confiscation, and therefore, no redemption fine would be imposable. 9. The learned Authorised Representative for the Revenue submits that as per the Valuation Rules, the assessable value should be on the last price on which M/s ACCIL sold the goods to the actual importers on High Seas Sales. He submits that in this matter, M/s ACCIL has sold the goods on High Seas Sales basis to the other appellants who had paid the Customs duty on CIF value + 2%, whereas M/s ACCIL had entered into sale agreement with the other appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or offer for sale. 12. It is observed that Section 14, simplyput, states that value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, in the course of international trade and the price is the sole consideration for the sale. 13. In the instant case, M/s ACCIL sold the goods on High Seas Sales basis to the other appellants. The said sale constitutes a sale in the course of international trade and the price at which the same is effected is the sole consideration for the sale. Hence, the assessable value will be the value at which M/s ACCIL sold the goods to the other appellants, who were the actual importers and who filed the Bills of Entry and paid Customs duty and cleared the goods. It is not disputed that M/s ACCIL has sold the goods at High Seas Sales for the price including the debit note value. Therefore, the differential duty demand confirmed by the Order-in-Original is liable to be sustained. The Appellants have relied upon various decisions in their favour to strengthen their arguments. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of service charges/commission paid etc., to establish a link between the first international transfer of goods to the last transaction. In case of doubt regarding the truth or accuracy of the declared value, the Department may reject the declared transaction value and follow the sequential methods of valuation under Customs Valuation Rules, 1988. 15. It is clearly stated in the said circular that the actual High Seas Sales contract price paid by the last buyer would constitute the transaction value under Rule 4 of Customs Valuation Rules, 2004. It is also mentioned that the importer is required to furnish entire chain of documents such as original invoice, High Seas Sales contract, the details of service charges, commission paid etc, to establish the link between the first international transfer of goods to the last transaction. In the instant case, it is clearly established that M/s ACCIL has entered into the sales agreement with the other appellants and had not furnished the details to Customs authorities, but raised the debit notes and recovered higher amounts from their buyers. Therefore, we find force in the arguments of the learned Authorised Representative for the Rev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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