Where purchase price fixed in first contract has been subsequently revised prior to importation of goods, then the Customs duty would be payable on revised price

[Bimal jain]

Where purchase price fixed in first contract has been subsequently revised prior to importation of goods, then the Customs duty would be payable on revised price

Gupta Steel Vs. Commissioner of Customs, Jamnagar [2015 (9) TMI 1019 - SUPREME COURT]

Facts:

Gupta Steel (“the Appellant”) is engaged in business of ship breaking. On August 23, 2000 the Appellant entered into Memorandum of Agreement (“MoA”) with the owner of the vessel for import of the said vessel for the purposes of breaking the same which was subsequently amended on August 30, 2000 and the price which was reflected in the earlier MoA was marginally reduced.

The ship was arrived and Bill of Entry (“the BOE”) was filed on September 1, 2000. The Assessable value was declared in the BOE in terms of the revised MOA. The Assessing officer accepted the value declared in the BOE. The Department filed an appeal against the order of the assessing officer and contended that the assessable value should be determined in terms of the MOA entered on August 23, 2000.

Held:

The Hon’ble Apex Court held that price was genuinely revised & gets reduced by amending the MOA and there was nothing wrong on the part of the Appellant to declare the price in the BOE. Hence, Customs duty should be determined on the basis of assessable value declared in the BOE.