RAMACHANDRA ART SILK YARN TRADING Vs. CC (IMPORTS)

JUDGEMENT

(1.) VIDE their impugned orders, the authorities below have raised the value of the imported viscose rayon filament yarn 120 Denier from US 2550 PMT to US 3380 PMT (CIF), in terms of the provisions of Section 14(1) of the Customs Act 1962 read with Rule 8 of the Customs of Valuation (Determination of Price of imported goods) Rules 1988.

(2.) AS per facts on records, the appellants bought consignment of viscose rayon filament yarn 120 Denier from Brazil by M/s. Vyapar Industries Ltd., on high sea sales basis. The goods were of Brazilian origin. Bill of entry was filed declaring the price as US 2500 PMT. The said price was based upon the invoice raised against the appellants. Proceedings were initiated against the appellants for increase in the value of the goods on the ground that other imports of the same goods were noticed to be at US 3380 PMT. The Assistant Commissioner of Customs, vide his impugned order admitted that the appellant's goods were of Brazilian original, whereas the other contemporaneous imports were of Chinese origin. He also concealed that there was no import of impugned goods from Brazil except the consignment under dispute. However, by observing that the Brazilian viscose rayon filament yarn is comparatively superior in quality than the goods of Chinese Page 121 origin and when the inferior quality is priced higher, than the Brazilian goods cannot be priced on the lower side. By observing so, he rejected the transaction value as reflected in the invoice and raised the same. The said order of the Assistant Commissioner was confirmed by the Commissioner (Appeals).

(3.) THE appellant's main grievance is that when the transaction value was available, the revenue was required to adopt the same, unless there was some material to show that the invoice value was not correct transaction value. It has been further contended that admittedly there was no import of Brazilian origin goods and the authorities could not have compared the value with the Chinese origin, inasmuch as they cannot be considered contemporaneous.