NEHA INERCONTINENTAL (P) LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appellants herein filed five bills of entry during the period between 26.4.2004 and 24.5.2004 for clearance of 16,000 sets of San brand Air Conditioners imported from China under a contract, declaring the value as US$ 85 per piece. The uniform value declared for 4 different models was disputed on the ground that the appellants had not opened letter of credit; that no quantity discount was shown to have been given by the foreign supplier to any other buyer and that the appellants did not produce the manufacturer's invoice, on the basis of NIDB data purported to be for similar model of same tonnage and same country of origin. It was proposed to increase the value for model No. KFR -51 GW to Rs. 9,100/ - CIF, for model KFR 61 -GW to Rs. 13,325/ - CIF, for model K -66 GW to Rs. 14,000/ - CIF and for Model ASW -24 to Rs. 14,000/ - CIF per piece. A quantity discount of 10% was proposed and thereafter the values for the models were enhanced to Rs. 8190/ -, Rs. 11,993/ -, Rs. 12,500/ - and Rs. 12,600/ -respectively. The show cause notice issue to the appellant was adjudicated by the Dy. Commissioner, who enhanced the values to Rs. 9,000/ -, Rs. 13,325/ -, Rs. 14,000/ - and Rs. 14,000/ - respectively, and after extending 10%, loaded the values of the respective models air conditioners to Rs. 8,190/ -, Rs. 11,993/ -, Rs. 12,600/ - and Rs. 12,600/ - respectively, applying the provisions of Rule 6 of the Customs Valuation Rules, 1988. This order was upheld by the Commissioner of Customs (A); hence this appeal before the Tribunal.

(2.) WE have heard both sides.