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2016 (1) TMI 323 - SC - CustomsValuation of import of soda ash light - declared price was lower than invoice price since the market price was down drastically - Held that:- It is clear from the above that in the show cause notice itself, the Department had accepted the fact that there was slump in the international market insofar as import of soda ash light is concerned. However, we find that the mistake which was committed by the Commissioner was to straightaway refer to the aforesaid Rules in order to arrive at the transaction value. This could be permissible only if the case had been covered by the provisions under sub-section (1A) of Section 14 of the Customs Act, 1962. Sub-section (1A) makes it clear that resort to the Rules is subject to the provisions of sub-Section (1) of Section 14. As per sub-Section (1) of Section 14, the value of the goods which are imported are to be fixed at the price on which such or like goods are ordinarily sold or offered for sale. Further, the said valuation has to be done at the time of delivery and place of importation or exportation. Thus, we are of the view that in the present case, the provisions of sub-section (1) of Section 14 are clearly attracted and there was no necessity of invoking the rules. The documents clearly show the prevailing market rate of the goods in question in international market at the relevant period. On that basis, if the value of the goods was declared at USD 120 per M.T. by the respondent/importer, this was perfectly justified and in consonance with the provisions of the Section 14(1) of the Act. - Decided in favor of assessee.
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