9911796707
TMI Blog1998 (1) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... view of these words the date of contract is the relevant date. We are unable to agree. The words "ordinarily sold or offered for sale" have to be read along with the words which precede and the words that follow these words. If thus read these words mean that for the purpose of assessing the value it is necessary to ascertain the price at which the said or like goods are sold or offered for sale for delivery at the time and place is importation and exportation in the cases of international trade. The words "ordinarily sold or offered for sale" do not refer to the contract between the supplier and the importer, but to the prevailing price in the market on the date of importation or exportation. We are, therefore, unable to accept the content ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... July 27, 1988. The said imports were made on the basis of a contract entered into by the appellant with M/s. Jinbo Boekl Shokal of Osaka, Japan on December 1, 1987 for the supply of 80 sets of second hand "NISSAN" Water Jet Looms. As per the invoice of the supplier dated June 23, 1988, the price of the said looms was 4,00,000 Japanese Yen per set. The goods had been shipped on June 18, 1988 and they arrived at the Indian Port on July 26, 1988. The appellant claimed that for the purpose of payment of customs duty the value of the goods should be assessed on the basis of the price indicated in the invoice. Similar goods (8 sets) had been imported from the same supplier in Japan by another firm, M/s. Hibotex Pvt. Ltd., on the basis of contract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value at 6,00,000 Japanese Yen per set. The appeal filed by the appellant against the said order of the Additional Collector has been dismissed by the Tribunal by the impugned judgment. 3.Shri D.N. Mehta, the learned Counsel for the appellants, has submitted that the Tribunal as well as the Additional Collector were in error in basing themselves on the date of shipment and the date of importation for the purpose of assessing the value of the goods. The submission is that the relevant date for assessing the value of the goods for the purpose of payment of customs duty under Section 14 of the Act is the date of the contract and that since the contract under which the appellant had imported the goods was made on December 1, 1987 while the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 buyer have no interest in the business of each other and the price is the [sole] consideration for the sale or offer for sale; where such price is not ascertainable, the nearest ascertainable equivalent thereof determined in accordance with the rules made in this behalf." 6.A perusal of the said provisions contained in Section 14(1)(a) shows that for payment of customs duty the value of the goods is :- the price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, unable to accept the contention urged by Shri Mehta that the Tribunal has committed any error in proceeding on the basis that value has to be assessed according to the price as on the date of importation and not on the basis of the date of contract. 8.Shri Mehta has placed reliance on the decision of the Calcutta High Court in Sneha Traders (Pvt.) Ltd. v. Collector of Customs, 1992 (60) E.L.T. 43 (Cal.), wherein the learned judges have expressed the view that assessable value has to be determined on the basis of the prevailing international market price at the time of entering into the contract and the delay in shipment on the part of the supplier cannot have any effect on determination of the assessing value. We find it diffi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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