GUJARAT AMBUJA CEMENTS LTD. Vs. CCE

JUDGEMENT

(1.) THE appellant is a leading manufacturer of cement. 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 tht the transaction value of about US 150 PMT was not acceptable for assessment of imported furnace oil to customs duty and the value has been enhanced to about US 174 PMT and differential duty demand and demand for interest made on this basis. The enhancement of value has been made on the basis of comparable import by other importers. The order also notes that the appellants had themselves imported furnace oil at a higher value under another Bill of Entry.

(2.) THE submission of the appellants in the present appeal is that the enhancement of value as ordered by the lower authority is contrary to the law on the valuation of imported goods and the facts of the case. The appellants have pointed out that imported goods are required to be valued at their transaction value. It has been submitted that while variation of prices under different transaction is normal and is to be expected, the variation in respect of appellant's imports is on account of fluctuation in furnace oil prices in the international market. The appellant'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, the 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 detention time of vessels and bringing out a faster turn around of vessels.

(3.) WE have perused the records and heard the learned SDR also.