PALCO METALS LTD. Vs. COMMISSIONER OF CUSTOMS, AHMEDABAD

JUDGEMENT

(1.) NOBODY appears for the appellants inspite of notice of hearing having been sent to them. Accordingly, we have heard the learned SDR and have gone through the impugned order.

(2.) THE issue involved in the present appeal relates to valuation of aluminium scrap imported by the appellant. The said scrap is of Tepid Grade. The lower authorities have enhanced the value of the said scrap based upon the value recorded in London Metal Exchange (LME) Bulletin. However, we find that there is no reason for rejecting the transaction value and adopting the LME price. It is well settled law that LME price can be a guide to be adopted for the purpose of enhancement only in those cases where transaction values are found to be incorrect. There is also no corroborative evidence to show undervaluation of the scrap. In the present case, Revenue has not produced any evidence to show that transaction value was incorrect or was on lower side. As such, we find no justification for enhancement of the value. The appeal is accordingly allowed by setting aside the impugned order.