BINANI CEMENT LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) APPELLANT is a manufacturer of cement. They import coal as an input for use in the said manufacture, The dispute raised in the present appeal is about valuation of three consignments of coal imported by them from South Africa during the months of May and July, 1999. The parties had agreed to a formula of US 30 per MT for coal of 6500 Kcal. The test report at the Port of export indicated the value as 6550 Kcal (Air Dried). When the sample was tested upon arrival in India, the value was found to be 6549 Kcal. The transaction was concluded between the parties on a value of US 30.23 PMT i.e. on the basis of 6550 Kcal. The Customs Authorities got the sample tested in their own laboratory, upon which it was found that the value was 6693 Kcal. ,Assessable value has been worked out at US 30.67 PMT applying that calorific value and duty demand confirmed.

(2.) WE have perused the records and have considered the submissions made by both the sides. Transaction between buyer and seller was decided on the basis of heat value determined by the test house agreed upon between the parties. There was no requirement in law to discard such a transaction value accepted by the parties and to work out a theoretical value for the goods based on the test result of the Customs laboratory. The value so obtained is merely academic. It has no application to the transaction. The amount paid or payable between the parties would be at the price of US 30.23 PMT worked out based on the test result of the examiner (SGS) settled between them. In these circumstances, we are of the opinion that differential duty demand made in the impugned order is not sustainable. The impugned order, is therefore, set aside and the appeal is allowed with consequential relief, if any, to the appellant.