GUJARAT HEAVY CHEMICALS LTD. Vs. COMMISSIONER OF CUS.

JUDGEMENT

(1.) THE only issue raised in this appeal at the instance of the importer is whether transaction value of the goods imported has to be on the basis of original agreed price @ US 106.00 PMT or revised price @ 100.50 PMT. From the facts it is clear that under the negotiations the price was revised and reduced by the foreign supplier as per his telex dated 14 -2 -91. It is the case of the Revenue that since the goods were shipped on 12 -2 -91, any change in the rate cannot be of any avail. The Commissioner has observed that reduction in price after importation cannot be taken into consideration for the purpose of correct value.

(2.) WE find merit in the contention raised by the appellant. The Commissioner (Appeals) has wrongly assumed that the reduction in the price accrued after the importation took place. The price was reduced under the telex dated 14 -2 -91 while the goods were in transit. The goods arrived in India only on 8 -3 -91. Therefore, it cannot be contended that the price was revised after the importation took place. We find no reason to agree with the view taken by the Commissioner that the transaction value has to be fixed on the basis of the terms in agreement dated 12 -1 -91. In the result, the order impugned is set aside and the appeal stands allowed.