RAJESHWARI METALLURGICALS LTD. Vs. C.C. (APPEALS), BANGALORE

JUDGEMENT

(1.) THE issue in both the appeals is common and hence they are taken up together for disposal as per law. The appellants had imported aluminium scrap and declared the assessable value at US $ 350 per Metric Tonne. The Original Authority proceeded to enhance the value to US $ 400 per Metric Tonne. The Department went in appeal for further enhancement to US $ 800 per Metric Tonne and relied on the rates declared by London Metal Exchange. The appellants contested the issue on the ground that the Revenue has raised a new ground in the appeal to enhance the assessable value to US $ 800 per Metric Tonne without issue of show cause notice and without any evidence of contemporaneous import. The appellants stated that they had accepted the enhancement of US $ 400 per Metric Tonne, as the Original Authority had relied on the evidence of like imports of the appellants themselves. However, they contested the further enhancement to US $ 800 per Metric Tonne in the Revenue appeal. It was further submitted that the transaction value cannot be rejected in terms of the Apex Court judgment rendered in the Eicher Tractors reported in 2000 (122) E.L.T. 321. Further the Commissioner rejected their pleas and enhanced the value to US $ 800 per Metric Tonne based on the prices shown in The Economic Times and the Mineral and Metal Bulletin published from Bombay.

(2.) THE learned Counsel submits that the Revenue cannot adopt a new enhanced price of US $ 800 per Metric Tonne without any basis and without any evidence of contemporaneous import and that too on the basis of the price declared in The Economic Times and Mineral and Metal Bulletin published from Bombay. He submits that the Tribunal in the case of Munna Gift Centre v. CC, Chennai reported in 2004 (178) E.L.T. 310 has set aside the enhancement of value in similar circumstances. He also refers to the Tribunal ruling rendered in the case of Jindal Strips Ltd. v. CC, New Delhi reported in 2001 (133) E.L.T. 570 (T) = 2001 (46) R.L.T. 863 wherein the Tribunal has held that transaction value cannot be rejected on the sole ground that the value shown is lower than the capital LME price quoted in the Metal Bulletin especially when the Department has not brought on record any evidence of contemporaneous import at higher price. The learned Counsel also relied on the Apex Court judgment rendered in the case of Eicher Tractors (supra).

(3.) THE learned SDR filed written submissions on behalf of the Department and contended that the value of goods declared in the journals The Economic Times and in the Mineral and Metal Bulletin should be accepted.