COMMISSIONER OF CUSTOMS Vs. RELIANCE INDUSTRIES LTD.

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue against the Order -in -Appeal No. 380 to 390/2013/Cus/Commr(A)/AHD, dated 10 -9 -2013 passed by Commissioner (Appeals), Ahmedabad. Under this OIA dated 10 -9 -2013, the first appellate authority has held that final assessment of LNG of CTH 27111100 imported by the Respondent should be made on the basis of transaction value worked out as per the contracts on the basis of ex -ship delivered quantity and unit price declared in the final invoices. Shri Alok Srivastava (AR) appearing on behalf of the Revenue submitted that four bills of entry were filed for the LNG declaring the quantity as mentioned in the Bills of Lading and on the basis of provisional unit price; that as per final assessment orders, the quantity of LNG declared in the bills of entry and the import manifest was to be taken for the purpose of payment of duty as there was no flow meter available at the port of import and quantity cannot be based on the post -discharge survey report. So far as paying duty on the basis of unit price as per the Final Invoice, it was argued that in two bills of entry as per Final Assessment Order dated 1 -5 -2013 the unit price remained unchanged whereas in Bills of Entry covered by Final Assessment Order dated 5 -6 -2013, the unit price was reduced which was not correct. It was his case that the quantity of LNG declared in the Bills of Lading and Load Port Ullage report should be taken as quantity imported into India as per Section 2(27) of the Customs Act, 1962. He relied upon the following case laws: -

(2.) SHRI J.C. Patel (Advocate) and Shri A. Vishal Agarwal appeared on behalf of the respondent. Shri J.C. Patel made the Bench go through Clause 7 & 16 of the Master (Ex -Ship) LNG Sale and Purchase Agreement dated 4 -11 -2010 and Clause (12) of the Confirmation Notice between Shell International Trading Middle East Ltd. & Reliance Industries Ltd. and argued that both quantity and value received and paid is determined as per these contracts; that as per these contracts duty was correctly paid on the quantity and price shown in the final invoices which is the transaction value. Learned Advocate relied upon the following circulars issued by CBEC: -

(3.) FROM the above contracts between the buyer and seller, the transaction value has to be calculated on the basis of the quantity of LNG discharged and Brent rate. There is no evidence on record that any amount over and above the transaction value has been repatriated by the ' Respondent to the seller of the LNG abroad. Respondent also relied upon the case law of Mangalore Refinery & Petrochem Ltd. v. Commissioner of Customs) Mangalore (supra). Paras 6 & 7 of the same are relevant and are reproduced below: -