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Issues involved: Appeal against setting aside enhanced value of imported goods by Commissioner (Appeals) based on contract details and market comparisons.
Details of the judgment: 1. Issue 1 - Enhanced value of imported goods set aside by Commissioner (Appeals): - The appeal was filed by Revenue against the impugned order setting aside the enhanced value of the imported goods. - The respondents imported "Fully drawn yarn 75 Deniers/72F" and declared the value at 0.71 USD/kg. - Revenue relied on NIDB data and market prices to enhance the value of the goods. - Commissioner (Appeals) set aside the enhanced value citing various grounds: - Direct contract with the manufacturer, not a trader. - Large quantity contract without contemporaneous export available. - Discounts by shipping line due to the huge quantity. - Contract for uneven grade FDY leading to high wastage and stoppages during production. - 100% down payment made with no agent or commission involved. - Penalty for not lifting agreed quantity within the specified period. 2. Issue 2 - Revenue's appeal for enhancing the value of imported goods: - Revenue contended that the value of raw material was higher than the imported yarn. - NIDB data showed identical goods imported at a higher value. - Revenue compared imported goods with local market prices and found a significant profit margin. - Revenue sought to enhance the value based on these comparisons. 3. Decision and rationale: - The contract was for 300 tonnes of uneven yarn with potential wastage during production. - Revenue's comparison data was for smaller quantities imported by others, not relevant to the large quantity under dispute. - The Tribunal found no merit in the appeal and dismissed it. - The judgment was dictated and pronounced in open court by S.S. Kang, Vice-President.
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