9911796707
TMI Blog2003 (8) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a market value of Rs. 52.50 per piece which was worked out at 150% of the appellant's purchase price. Purchases were from manufacturers in Rajasthan and according to the Central Excise clearance documents (AR-4) the sale price of the goods was Rs. 35 per piece. 2. The Assistant Commissioner of Customs proceeded against the appellant by charging that he has misdiclared the FOB value at US $ 3.40 (about Rs. 157 per piece). The order of adjudication held that the export price is not "genuine", since for a local purchase price of Rs. 35 per piece, export price cannot be as high as Rs. 157 (450%) and that a competitive export market would not accept such a vast variation between domestic price and export price. The order, therefore, fixed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the DEPB rates have been fixed on percentage of FOB value which are further restricted for calculation of value by imposing CAP values of Rupees per piece or rates per kg. Now, it is observed that the FOB value declared by the appellants was Rs. 157.08 per piece. At the same time, they declared the PMV at Rs. 52.50 per piece, which was inclusive of Customs and Excise duty, Sales tax and other local taxes plus cost of transportation. Obviously, there is no duty liability on the amount which is in excess of Rs. 52.50 and as such, no credit should be available on this excess amount. It is seen that the lower authority has fixed the price of Rs. 80/- per piece for calculation of duty credit, which is higher than the market value. The lower au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the submissions made by both sides. There is no material on record which indicates that the export price (FOB) declared by the appellant was not "genuine" in the sense that transaction was at a different price. Market value declaration made by the appellant is also fully supported by his purchase price from the manufacturer in India. The lower authorities have fixed the FOB price of Rs. 80 on the basis of computation of the price from the manufacturer's price. This has no relation to price in export trade. Therefore, FOB price determination carried out by the lower authorities can only be treated as academic or ipsi dixit. The general observations made by the Commissioner (Appeals) with regard to the basis for fixing DEPB rate cannot consti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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