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2015 (12) TMI 1044 - AT - CustomsEnhancement of value on the second hand plant and machinery (entire refinery) imported by the appellants under 123 Bills of Entries, and cleared through Chennai, Pondicherry, Karaikal and Cuddalore ports - different approach by different authorities for valuation - Held that:- On perusal of the contract agreement entered with the foreign supplier M/s. UHDE, Gmbh, Germany, we find that it is for the supply of entire refinery equipments from the existing mobil refiney, Germany on “as is where is condition” and includes dismantling, packing, freight etc. As per the terms of the agreement, the existing mobil refinery to be dismantled and supplied to the appellant s site. As per the scope of the contract, and article (2) of the agreement , the said contract covers supply of refinery equipments including containers and documentation from outside India as per the Annexure-A and includes dismantling, shifting services as listed in Annexure-B. The entire refinery equipment will be delivered at CIF terms to the Ports viz Chennai, Pondicherry, Karaikal and Cuddalore. As per article 4 of the agreement, the consideration for the supply of the second hand refinery equipment was around 220 million DM. Vide amendment to the said contract agreement dated 09.04.99, it has been enhanced. Consequent on the finalization of five bills of entries by Chennai Customs, the jurisdictional authorities at Pondicherry, Cuddalore and Nagapattinum have taken up the finalization of assessment of the B/Es and finalized and loaded the value by simply relying the Chennai Customs order dated 04.03.2011. No independent findings given for rejecting the transaction value. On appeal, the Commissioner (Appeal) Trichy had upheld the impugned order of loading the price by 2.195 times and LAA, Chennai set aside the OIO of the AC, Puducherry. Adjudicating authorities at Puducherry, Cuddalore and Nagapattinam failed to determine the value of the second hand machineries in accordance with custom valuation Rules (CVR) read with Board’s Circular, instead adopted the percentage of loading done by the DC, Chennai. Interestingly, we find that the two LAAs passed two contra orders, one upheld the OIO of Cuddalore and other LAA set aside the OIO of Puducherry, resulting in both assessee and revenue are before this Tribunal. It is pertinent to see that the order of DC, Chennai, which is adopted by other three authorities is non-exist now as the same has been set aside by LAA, Chennai order dated 27.7.2012. Therefore, in view of the peculiar nature of this case and considering the overall circumstances of the case and without going into the merits of the case, we are convinced that it is a fit case to be remanded to the original authority - whole issue relates to a single project and relates to a single refinery plant to be set up at Cuddalore and requires to examine and re-determine the value afresh by original authority. - Matter remanded back - Appeal disposed of.
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