COMMISSIONER OF CUSTOMS, KANDLA Vs. RESHMI PETROCHEM LTD.

JUDGEMENT

(1.) THE dispute in the present appeal of the Revenue relates to the valuation of Polypropylene granules of Malasian origin imported by the respondent from Singapore. The declared value of the goods was USD 815 PMT which stands raised by the original adjudicating authority to USD 1150 PMT. For enhancing the value, the original adjudicating authority has relied upon the prices available in the international journal DEWWITT Petrochemical Alert as also upon the contemporaneous data of import at Mumbai Customs House. The Commissioner (Appeals), while dealing with the above two reasons, for enhancing the value, has held that they are not sufficient and has extended the benefit to the respondent. Hence, the present appeal by the Revenue.

(2.) AFTER hearing both sides, we find that enhancement of price based upon the prices indicated in the journal was the subject matter of various decisions of the Tribunal and it has been held that adoption of such prices for enhancement of the transaction value as shown in the invoices was without any basis. A reference in this regard is made to Tribunals decision in the case of M/s. Gujarat State Export Corpn. Ltd. v. CCE, 2002 (145) E.L.T. 661 (Tri.). Further in the case of M/s. Adani Exports Ltd. v. CC, 2000 (116) E.L.T. 715, it was observed that unlike London Metal Exchange, where actual trading of the metal takes place, the PLATTs price report is not based upon the transactions, but is merely a compilation of price ranges of various plastic materials. As such, the Tribunal rejected the Revenues prayer to enhance the price based upon the PLATTs report. Similar was the decision in case of CC, Chennai v. Deejay Plastics (P) Ltd., 2002 (139) E.L.T. 421. As such, we fully agree with the appellate authority that price enhancement based upon the journal, is not in accordance with the law.

(3.) WHILE dealing with the contemporaneous import, the appellate authority has observed as under :