ADITYA FUELS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE dispute in the present appeal relates to correct value of "White Cane Sugar" imported by the appellants.

(2.) AS per facts on record, the appellants entered into a contract with M/s. Cargill International S.A., Geneva, on 23 -4 -99 for import of about 10,000 MTs of White Cane Sugar @ US 195 PMT. The said contract was entered into through M/s. Rasex Traders, Mumbai, who acted as broker on behalf of the Car -gill (India) Pvt. Ltd. The terms of payment; as per the said contract, were under irrecoverable L/C payable at site upon the presentation of documents. The contract was confirmed by the appellants vide their letter dated 26 -4 -99 and cheque for an amount of Rs. 16,77,000/ - as security was sent.

(3.) AS per the appellants, they were not in a position to open the L/C immediately in favour of the Cargil (I) Pvt. Ltd. and, as such, they brought Wajilam Exports (Singapore) Pte Ltd. who agreed to open the L/C in favour of Cargil on behalf of the appellant, subject to the appellants paying Wajilam interest at the prime bank rate for a period not exceeding 90 days from the date of Bill of Lading. Accordingly, the L/C was opened by Wajilam in favour of Cargil on 3 -5 -99. As per the conditions of the said L/C, Cargill would issue invoices in favour of the Wajilam in negotiations of documents and Wajilam would thereafter issue invoices in favour of the appellants. The contract was registered on 7 -5 -99.