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TMI Blog2003 (6) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... ct from November, 1999. Till April 2000, consignments under 20 Bills of Entry were assessed and cleared through the Customs at the contracted transaction value. However, dispute about valuation was raised by Customs in April, 2000. The reason was that another importer, M/s. Rasandik Engineering Industries India Ltd. started importing identical goods from M/s. British Steel Corpus, U.K. at higher value of 718 US $ per MT. The appellant sought to defend their lower transaction value for the purpose of assessment of the goods stating that the appellant was importing much higher quantity than the new buyer and that the appellant has negotiated transaction price which is liable to be accepted for assessment of the goods imported by them in terms of Section 14(1) of the Customs Act and Rule 4 of the Customs Valuation Rules. The Deputy Commissioner of Customs, ICD, Tughlakabad, New Delhi rejected the appellant's contention, noting that the importer had failed to submit the details of the negotiation and that the "prices agreed due to competitive global reduction in steel price" were not the prices in the ordinary course of international trade". However, in view of the fect that M/s. Rasan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Rajkumar Knitting Mills Pvt. Ltd. v. C.C., Bombay - 1998 (98) E.L.T. 292 (S.C.). 5. In the present appeals also the appellant has raised the same contentions. During the hearing of the appeals, the learned Counsel for the appellant pointed out that any reopening of completed assessment under the Customs Act, has to be carried out in terms of Section 28 of that Act and that Section specifically provides for issue of show cause notice within the time limit stipulated therein. The learned Counsel pointed out that since no such notice had been issued in relation to the goods which had been cleared under 20 Bills of Entry till April, 2000, the Deputy Commissioner's order with regard to short-levy on those consignments has to be set aside on that ground alone. With regard to the goods not yet imported, the learned Counsel pointed out that advance determination of the value of those goods by the Deputy Commissioner was not contemplated in the Customs Act at all, and on that ground, that part of the order also was required to be set aside. With regard to the goods covered by 9 Bills of Entry from April to May, 2000, the learned Counsel argued that the declared values were the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imports. Learned Counsel also pointed out that the appellant's case is also covered by the decision of the Apex Court in the case of Basant Industries v. Addl. Collector of Customs, Bombay - 1996 (81) E.L.T. 195 (S.C.). Learned Counsel pointed out that in that judgment the Apex Court held that "a mere comparison of two invoices without anything more, may not be correct to proceed on the premise that there is undervaluation. The relationship between the supplier and importer has also to be kept in mind because it is a matter of common knowledge that a price which is offered by a supplier to an old customer may be different from a price which the same supplier offers to a totally new customer". 7. Learned SDR pointed out that the impugned order has been passed following the decision of the Apex Court in the case of Rajkumar Knitting Mills (P) Ltd. (supra). It was submitted that time is an important element for valuation of goods under Section 14 of the Customs Act. Price at the time of import has to be accepted for valuation and not the price contracted much in advance. Learned DR pointed out that on this issue, there is no difference with regard to legal provisions prevailing unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the reasons mentioned in the Rules themselves, the same is to be accepted. It has also been ruled that the discount granted by a vendor for variety of reasons including stock, clearance would satisfy the requirement "for being the sale price" in the "ordinary course of sale". The Apex Court has also held as under in Basant Industries case (supra) : "3. Ordinarily, this Court would not like to interfere in a matter of price fixation, but at the same time it seems necessary to impress upon the Department that by a mere comparison of two invoices without anything more, it may not be correct to proceed on the premise that there is undervaluation. The relationship between the supplier and importer has also to be kept in mind because it is a matter of common knowledge that a price which is offered by a supplier to an old customer may be different from a price which the same supplier offers to a totally new customer." 10. In the instant case, the appellant had tied up a long term supply contract. Prices were fixed depending upon the quantity and time of supply. The prices varied from US $ 585 PMT to 555 US $ PMT depending upon the time of supply. Such a price clearly satisfies the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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