9911796707
TMI Blog1999 (11) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi). 2.1 Based on information that real value of the goods was much higher than the declared value in the Customs documents, enquiries were initiated by the Customs authorities and, pending completion of inquiries, goods were provisionally released against provisional duty bond with bank guarantee. 2.2 During the course of enquiry, the appellants were directed by the Customs authorities to produce foreign manufacturer's Price List valid for the year 1994 and copies of correspondence with the supplier. According to the Price List produced by the appellant, the manufacturer's price for SOMATOM ARC was 788000 F.O.B. DM w.e.f. 1-1-1994. Thereupon, the Customs authorities proceeded against the appellants for mis-declaration of the value of the goods as the invoice value was much lower than the List Price. In support of this charge, the Customs authorities noted that the same goods had been imported at much higher price by Hindu Rao Hospital in February 1992 at DM 2353777. 2.3 The proceedings ended in the passing of an adjudication order No. 2/RKC/ACU/96, dated 24-1-1996 by th e Commissioner of Customs, New Delhi. This order fixed the assessable value of the goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Asstt. Commissioner of Customs, GATT Valuation Cell, Mumbai in this connection. 3.1 The appellants have also submitted that even in terms of Rule 4(3)(b) of the Customs (Valuation) Rules, 1988, the transaction value is required to be accepted in the present case. In support of this submission, they point out that identical goods had been sold by their supplier to unrelated parties in India at comparable time at the same price. They have referred to sale of SOMATOM ARC to Goa Medical College, Apollo Hospital, and other parties in this regard and the sale price was DM 300000. Based on this sale, they submit that their purchase price is required to be accepted as they have demonstrated with the help of these sales to unrelated parties that their sale price satisfies the requirement that it "closely approximates ..... transaction value of identical goods ... in sales to unrelated buyers in India". 4. The appellants have also explained the huge gap between the price shown in the Price List and the invoice price as the result of Price List prices being only "Basis Price" which are just indicative prices to calculate the actual selling prices of the products for various cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant. It has held that the goods imported by the unrelated parties were not identical goods. The order also observed that in certain cases commission was payable at the rates within the range of 20612-23670 DM, while in the case under consideration, no commission was payable. For these reasons, it was held that sale prices to unrelated parties cannot be treated the same as the price charged from the appellant. The order further observes that the price of SOMATOM ARC has been given by breaking up the consolidated prices indicated in the invoices to Goa Medical College, Apollo Hospital, etc. and expenses like payment of commission, provision for warranty and installations etc., varied from one price to another. Accordingly, the order concludes that the break up value furnished "had been manipulated by the exporter in connivance with the party with their Indian agents". The order, therefore, holds that invoice value cannot be the basis for valuation and that transaction value of identical goods to unrelated persons were not available for assessment of the goods. Therefore, the order fixed the assessable value at the List Price of DM 78800 (Rs. 1,43,81,000) by resorting to the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RC was 3 lacs DM only. The impugned order notes this position and states that "a perusal of the above chart reveals that the prices for only a few items like SOMATOM ARC, Dynamic CT, Agfa Camera of Curix 60 was constant whereas the expenses under the other heads vary from one importer to another importer considerably." The importer's submissions are that the sale price for the item under import is uniformally 3 lacs DM to all buyers in India; they have also been sold SOMATOM ARC at the same price; their seller had certified that they had not received any other payment or consideration other than the invoice price for the supply in question, the Special Investigation Branch of the Customs had concluded that the sale price between them and their foreign supplier is not vitiated by the relationship and these factors justified acceptance of the invoice price for the assessment of the SOMATOM ARC and even if that price is discarded the goods should be assessed at the price at which identical goods were sold to unrelated buyers like Goa Medical College, Apollo Hospital, etc., at about the same time as the sale to the importers. The Commissioner, however, has rejected these submissions ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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