UNION OF INDIA Vs. K AMISHKUMAR TRADING PVT

JUDGEMENT

(1.) Rule, by consent, returnable forthwith. With the consent of the Counsel and at their request, the Petition is taken up for hearing and final disposal.

(2.) The Union of India is in a challenge to the validity of an order passed by the Settlement Commission on the ground that a jurisdictional condition for the exercise of powers under Section 127B of the Customs Act, 1962 was not established. The Settlement Commission acting on an application filed by the First Respondent passed a Final Order on 21 December 2010.

(3.) A company by the name of Vinayaga Marine Petro Ltd., imported a consignment of 2044.17 metric tonnes of Prime non-alloy hot rolled steel coils from a consignor in Hongkong. The price of the goods under an invoice of 16 September 2008 was US $ 938 per metric tonne. An advance Bill of Entry was filed on 30 September 2008. The transaction between the consignee and the shipper was not completed and according to the First Respondent, the title to the goods remained with the shipper. The First Respondent claims that it negotiated with the shipper who then agreed to sell the goods at a value of US $ 442 per metric tonne. The IGM was allowed to be amended by the Assistant Commissioner and Bills of Entry dated 18 November 2008 and 5 December 2008 were filed. According to the First Respondent, the demurrage charges which were accumulated till the date of the execution of the contract (6 November 2008) were to be borne by it; these being in the total sum of Rs. 1,00,03,752/-. The Bills of Entry filed by the earlier consignee were cancelled by the Assistant Commissioner of Customs. Pending the finalisation of assessment, the imported goods were to be allowed to be released provisionally on the payment of duty on the basis of the higher transaction value of US $ 938 per metric tonne declared by the earlier consignee.