TMI Blog2008 (4) TMI 436X X X X Extracts X X X X X X X X Extracts X X X X ..... at of the first appellate authority is restore. The appeal is allowed accordingly. – Tribunal’s order contrary to principle laid down by SC in precedent decisions, not sustainable - 7179 of 2002 - - - Dated:- 23-4-2008 - S/Shri Joseph Vellapally, Sr. Advocate, Ms. Pooja Dhar and Prashant Kumar, Advocates, for the Appellant. S/Shri K. Radhakrishnan, Sr. Advocate, Ms. Binu Tamta and B. Krishna Prasad, Advocates, for the Respondent. [Order]. - The appellant filed Bill of entry No. 337431 dated 18th July 2001 covering one second hand Automatic Transfer Honing Machine with three Honing stations. The declared value of the said goods was DM 150000 equivalent to Rs. 31,12,500/- which was cleared on the basis of supplier's (Robert Bosch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in Rule 4 of the Rules is limited to the transaction in question and that this mandate is only subject to certain exceptions specified in Rule 4(2)'. It was further held that the term 'ordinarily sold' in Section 14(1) of the Customs Act, 1962 implies the exclusion of extraordinary or special circumstances as detailed statutorily in Rule 4(2). The Commissioner also relied upon a judgment of this court in the case of Rugmini Ram Raghav Spinners Pvt. Ltd. v. Commr. of Cus., Chennai - 1998 (103) E.L.T. 366 wherein it was held that, "Section 14 (read with Rule 4) recognises the primacy of transaction value, whether it be new goods or second hand machines …. law does not allow rejection of transaction value under Rule 4 by ab initio applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of this court in the case of Valdilal Dairy International Ltd. v. Commissioner of Cus., Bombay - 2005 (180) E.L.T. 436 (S.C.); Tolin Rubbers Pvt. Ltd v. Commissioner of Customs, Cochin - 2004 (163) E.L.T. 289 (S.C.); Commissioner of Customs, Calcutta v. South India Television (P) Ltd. - 2007 (214) E.L.T. 3 (S.C.) and an unreported recent judgment of this court in the case of Commissioner of Customs v. J.D. Orgochem Ltd. rendered in Civil Appeal No. 5843 of 2006 decided on 10th April 2008. 7. Mr. K. Radhakrishnan, learned senior counsel appearing for the Revenue, on the other hand, supported the findings recorded by the Tribunal. 8. Rule 3 of the Rules deals with the determination of the method valuation, clause (i) whereof provides th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade. Section 14 is the deeming provision. It talks of deemed value. The value is deemed to be the price at which such goods are ordinarily sold or offered for sale, for delivery at the time and place of importation in the course of international trade where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or for offer for sale. Therefore, what has to be seen by the department is the value or cost of the imported goods at the time of importation, i.e., at the time when the goods reaches the customs barrier. Therefore, the invoice price is not sacrosanct. However, before rejecting the invoice price the department has to give cogent reasons for such rejection. This i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances, the impugned order of the Tribunal and the adjudicating authority are set aside and that of the first appellate authority is restore. The appeal is allowed accordingly. 15. On an application filed by the appellant-assessee, this Court passed the following order during the pendency of this appeal: "The application for stay is disposed of by directing that all future imports will be subject to provisional assessment and such provisional assessment and all the past provisional assessments in respect of similar import will be subject to the outcome of this appeal." 16. Mr. Vellapally appearing for the assessee has informed us that in view of the above interim order provisional assessments for the subsequent imports have been made ..... X X X X Extracts X X X X X X X X Extracts X X X X
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