9911796707
TMI Blog1994 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... imported. The precise question which is raised in these petitions is that when Polyester Filament Yarn is imported wounded on bobbins whether customs duty is leviable on the entire invoice price or be subjected to levy of customs duty under respective tariff items by dividing the invoice value of goods according to net value of yarn and bobbins independently. 3.Leamed Counsel for the petitioners contends that bobbins are of durable character and can be refused or returned. Therefore, the bobbins, being an independent dutiable article, whether made of aluminium, or iron or paper, subject to levy of customs duty under the Act, are liable to be taxed separately and not as a part of yarn of its full invoice price. In other words, the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the petitions have no merits. Section 14 of the Customs Act provides for valuation of goods for the purpose of assessment of duties leviable under the Act. Relevant part of Section 14 reads as under : "14. Valuation of goods for purposes of assessment. — (1) For the purposes of the Customs Tariff Act, 1975 (51 of 1975), or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, 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 b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... package as two different transactions. It may be noticed that the invoices the petitioners have produced alongwith the petitions invariably show one price of the entire consignment, though in some of the cases, after showing one common rate for the entire consignment, note has been appended dividing the invoices price relatable to yarn and bobbins separately but without disclosing the rates of yarn or bobbins. To illustrate Annexure C-1, in Special Civil Application No. 1731 of 1983, invoice dated February 18, 1982 discloses that it is for 92 cartons of yarn weighing 2484 kgs. at the rate of 990 yen per kg. totalling 24,49,168 yens, after invoicing the entire consignment in this manner, it has further shown value of yarn and bobbins separa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 25 of the Customs Act. The notification granted exemption from payment of excise duty on packing material on certain conditions, one of which was that invoice must show separately the value of packing material of imported goods separately. The invoice did not show such separate value. Customs duty on import of P.V.C. was levied on full invoice. Thereafter, assessee's claim for exemption from customs duty on import of packing material was rejected on that ground. Assessee had contended that the import otherwise fulfilled all conditions and that invoice value includes the cost of packing material, therefore, he is entitled to exemption. It was also contended that otherwise it will result in double taxation of packing material, once ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such course and that does not also appear to be the practice. There appears another difficulty in the way of accepting the assessee's contention as stated above, duty/additional duty is charged on the entire invoice value of P.V.C. (imported goods) at the rate applicable to P.V.C.; now if the assessee's contention is accepted, it means that the proper officer should separate the value of packages, calculate the duty/additional duty leviable thereon at the rate applicable to packages separately and give deduction (exemption) of such amount from the total amount; this "two-rates" theory is inconsistent with the rule of value in Section 14(1)." The principle is fully applicable to the petitions before us. 9.In view of the aforesaid clear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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