COMMISSIONER OF CUSTOMS Vs. VAZIR POLYMERS LIMITED

JUDGEMENT

(1.) None appeared for the respondents. Heard Shri S. Singhal, learned DR for the Revenue. In this case, the respondents had declared the value of the impugned consignments of LLDPE/HDPE as US 225 per metric tonne. The Additional Commissioner of Customs who has passed the impugned Order -in -Original enhanced the value to US 352.35 for the purpose of assessment. The Commissioner (Appeals) has passed the impugned Order -in -Appeal setting aside the Order -in -Original mainly on the ground that the department has not provided evidence of contemporary import prices.

(2.) Shri S. Singhal, learned DR appearing for the department states that the Commissioner (Appeals) has erred in holding that the department has not provided evidence of contemporary import of higher prices inasmuch as in the cross objection filed by the department range of prices at which imports were noticed was clearly mentioned. He, however, admits that specific instances of contemporary imports were not provided but the same has since been made good by submitting copies of four bills of entries as listed in the appeal papers filed before the Tribunal. He also cites the decision of the Apex Court in the case of Punjab Processors Pvt. Ltd. v. CC in which it has been held that while assessing value of import, Customs authorities are not bound by the figure mentioned in the invoice and can rely on contemporaneous evidence to show that the invoice value is not the correct value, he also cites the decision of three judges Bench of the Apex Court in the case of Rajkumar Knitting Mills (P) Ltd. v. CC, Bombay upholding assessment on the basis of comparable price of other imports taking the relevant date of importation into account. He also draws our attention to the following observations of the hon'ble High Court of Gujarat in the case of Ramchandra Art Silk Yam v. Union of India : Since this Court is not directly concerned with the determination of value for assessment of the Customs duty which is a subject matter exclusively within the domain of Customs authority, it does not find necessary to go into that aspect in any further details, the provisions of the Act and the Rules are being examined by us only for the limited purpose of finding out whether the directions or guidelines issued in the impugned Standing Orders are in any manner contrary to the provisions of law and result in taking away power and discretion of the assessing authorities. It is enough for our purposes to state that in a given individual case, the authorities might find the 'transaction value' as not genuine or reflecting the real value of such goods comparable with the price of such goods when ordinarily sold or offered for sale at the same time and place in the course of import. It is not in all cases that the 'transaction value' is to be accepted by the Customs authorities as determinative of the value for Customs duty. If the transaction value is found to be ridiculously low or not acceptable on other relevant consideration such as parties being related, the enquiry with regard to international prices of such goods becomes relevant and sometimes necessary.

(3.) Shri Singhal argues that in the light of the aforesaid decisions of the Apex Court and Hon'ble High Court of Gujarat, the assessment done on the basis of prevailing market price as reflected in the reputed journal Platts on the relevant date after giving a discount of 40% for the floor sweeping was in order. He further states that in any case the assessed price is also supported by the evidence of contemporaneous imports which has since been provided by the department. He further states that in the case of Sources India Impex Pvt. Ltd. v. CC, New Delhi , the Tribunal has remanded the matter for fresh consideration with reference to price shown in the imports made during the relevant period.