EXCEL GLASSES LTD. Vs. COMMISSIONER OF CUSTOMS, TRICHY

JUDGEMENT

(1.) THIS appeal at the instance of the importer challenges the order dated 29 -12 -2000 passed by the Commissioner of Customs (Appeals), Chennai. Relevant facts are as follows :

(2.) M /s. Kopran Ltd., Mumbai placed an order for supply of Soda Ash from one M/s. Quingdas Soda Ash Industrial Co. Ltd., Chennai in the year 1997. The goods were originally shipped on vessel S.S. DASTAR on 31 -7 -97. Due to adverse climatic condition the vessel was delayed. In the meanwhile, the crew who were not paid their wages got the vessel arrested and took the same to Singapore. The vessel was later sold to another party named Sahaj who brought the cargo to Tuticorin ultimately on 24 -7 -1998. In view of the undue delay in delivery of the cargo, the original indentor M/s. Kopran Ltd. sold the goods to the appellant on High Seas basis at Rs. 5,325/ - PMT which worked out to 128.31 $ PMT at the prevailing exchange rate. The declared value of the appellant was not accepted by the Department who raised the same at $ 158.35 PMT which was the original price in transaction between M/s. Kopran Ltd. and M/s. Quingdas Soda Ash Industrial Co. Ltd., Chennai. Commissioner (Appeals) also took the view that the original price agreed upon in 1997 represented the correct transaction value.

(3.) THE issue raised in the present appeal is whether the transaction value has to be taken as the price at which the goods were sold on high seas basis in 1998 or the price in 1997. It is not disputed that the price of soda ash has come down in the international market during the period from 1997 to 1998. The Commissioner (Appeals) took the view that the provisions contained in Section 14(1) has to be read in harmony with sub -section (1A) and value shall be determined in accordance with the Customs Valuation Rules. As per Rule 3(1) the value of the imported goods shall be the transaction value and Rule 4(1) provides that the transaction value of imported goods shall be the price actually paid or payable for the goods when sold for export to India adjusted in accordance with the provisions of Rule 9. According to the Commissioner (Appeals) in the instant case originally the transaction was between M/s. Kopran Ltd. and M/s. Qingdao Soda Ash Industrial Co. and this original transaction had all the attributes of a transaction during the course of international trade. Therefore the price originally paid by M/s. Kopran Ltd. to the overseas supplier has to be taken as the transaction value. Even though the assessee had placed reliance on two decisions of the Tribunal, namely, Sanjay Chandiram v. CC - 1991 (52) E.L.T. 413 and Godavari Fertilisers and Chemicals Ltd. v. CC, Visakhapatnam - 1996 (81) E.L.T. 535 the Commissioner took the view that the ratio of those decisions are not applicable to the facts of the case.