RAJESWARI METALLUUGICALS LTD Vs. CCE

JUDGEMENT

(1.) IN this matter, the Registry had issued a defect memo as far back as 21.8.1995 calling upon the appellants to file a stay application as the same had not been done including to produce two more sets of appeal papers so as to list the matter for hearing. The appellants had not attended to this for a long time. However, the defects have been rectified and that is how the stay application and appeal have been listed. This stay and appeal arise from Order -in -Appeal No. 54/95 dated 2.5.1995 raising the assessable value declared by the appellants in Bill of Entry No. 251 dated 21.2.1995 in respect of 21.749 MTs. of copper scrap from US 840 which had been in terms of negotiation and contract arrived at by the appellants to raise at US Dollars 1,350/ - per MT, solely on the basis of a Circular issued by Madras Custom House by their letter Nos. 59/Misc/94 -GRIV dated 15.11.1994. On that basis alone the Commissioner (Appeals) enhanced the value rejecting the appellants' plea that the Circular cannot be the basis for enhancement of the value and it has to be in terms of evidence of contemporaneous import and in that regard they relied on several judgments. The Commissioner in his 17 page order has merely noted these citations but has not given any findings or discussed the ratio of these judgment except to hold that he has to follow the Custom House's letter on that has enhanced the value thereof.

(2.) LD . Counsel Shri S. Raghu contends that the entire order is not sustainable as the law on this aspect is well laid down and settled. The department has to produce proof of contemporaneous import and show that there was a deliberate misdeclaration and undervaluation in the matter. He submits that the price arrived at was on the basis of negotiation and therefore transaction value is required to be accepted. The circular referred to in the order refers to some other news item appearing in the Economic Times and Minerals and Metals policy which details were never furnished to importers. Therefore, the entire order is a non speaking order and hence waiver be granted and recovery stayed. He submits that as there is also a violation of principles of natural justice, the matter itself could be taken up and remanded with a direction that Commissioner shall examine all the judgements cited and decide the case on the well laid law down under Section 14 of the Customs Act and the ratio of the judgements cited by the appellants.

(3.) LD . DR justifies the order that the international prices were regulated by the Minerals and Metals Bulletin, which had shown the day to day transaction and the value of the Copper Scrap and the Custom House had adopted the value of US 1350/ - per MT. in terms of prevailing price as available on that date and such a reliance cannot be considered as contemporaneous in nature and therefore even if the Commissioner has not discussed those judgements, but yet the principles of Section 14 of the Customs Act had been satisfied and there is no contravention thereof. He submits that the appellants are required to pre deposit the amounts and hence the question of remanding it at this stage does not arise.