2003 (7) TMI 152

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..... nt. For that purpose they regularly import large quantities of furnace oil through their own port at Mul Dwaraka. Under the impugned orders it has been held that the transaction value of about US$ 150 P.M.T. was not acceptable for assessment of imported furnace oil to customs duty and the value has been enhanced to about US$ 174 P.M.T. and differential duty demand and demand for interest made on t .....

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..... t's explanation all through was that price for the appellant's purchase is determined as the five-day average price from the bill of lading date. It is their submission that, this price formula is the reason for the variation in transaction values. It has further been stated that appellant gets a better deal on freight since they import their goods through their own private port, thereby reducing .....

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..... n of the same importer. In the present case, transaction values have been arrived at according to a pricing formula agreed between the parties. That formula is a purely commercial one and Tax authorities are not justified in rejecting prices determined according to that formula. The appeal is allowed and the impugned order is set aside, with consequential relief to the appellants. The amounts depo .....

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