New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (12) TMI 1344 - CESTAT MUMBAI

2015 (12) TMI 1344 - CESTAT MUMBAI - TMI - Valuation - reliance on the quotation price - Rejection and re-fixing of transaction value - Determination of value under Rule 8 - Confiscation of goods - Demand of differential duty - Held that:- Value of the goods shall be deemed to be the price at which such or like 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mpany has not only not disputed the correctness of these quotations but has not produced any other material on record to show that the value mentioned in the invoices was the correct market value of the goods imported at the relevant time. The adjudicating authority in these circumstances was perfectly justified in taking the prices mentioned in the quotations as a basis for determining the correct value of the imported goods.

Fact that the trade representative of USSR in his letter d .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Assessee. - APPEAL No. C/974 & 975/07 - Dated:- 3-11-2015 - Mr. S.S. Garg, Member (Judicial) And Mr. Raju, Member (Technical) For the Petitioner : Shri. K.K. Anand, Advocate For the Respondent : Shri D.K. Sinha, Asst. Comm. (AR) ORDER Per: Raju 1. The appellant M/s.Shimnit Machine Tools & Equipment Ltd., (M/s.Shimnit Infrastructure Ltd.) imported five consignments of broadcasting equipments viz., Hitachi Z-ONE-D Camera System and accessories shipped by M/s.Sansho Co. Ltd., Osaka, Japan by ai .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ndia between 2nd to 4th November 1995 and to be returned after the exhibition. 2. The cameras imported at cost of ₹ 3,22,026/- by above bills of entry were sold for about ₹ 26.43 lakhs. Search of the appellant premises were made and certain documents were recovered. It emerged that appellants are exclusive agents of Hitachi Denshi Ltd., Japan for their entire range of products. The appellants were to negotiate sales with various purchasers like, Doordarshan India, BEL, Asianet, Gemin .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

hi Ltd. addressed to the appellants for various products including the Z-ONE-D Camera for Japanese Yen 9,55,000 per piece. Also recovered was a documents dated 03/08/85 of the appellant claiming that they have to pay money to the officers of BEL, Doordarshan and Ministry of Broadcasting, therefore, in case they wanted to sale goods to these customers price including this 10% is to be quoted by Hitachi Camera System. Another documents dated 02/06/94 recovered was letter of M/s.Sansho Co. Ltd. add .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the prices. The price of our Hitachi Affiliated Company in USA is as follows: Z- ONE-D Dealer Price List Price US $ 13,500 US$ 19,000 Annexure XIII to the SCN was a document showing Hitachi price list and inventory of appellants: 3. Shri Nitin Shah, Managing Director of the appellants informed that M/s..Sansho Co. Ltd., are authorised export agents of M/s.Hitachi Denshi Ltd. In order to promote sales they called for demonstration of camera for exhibition to be held at Worli Trade Centre between .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t under priced value and willfully misdeclared the goods as being Products for display at Broadcast India 95 exhibition, which is going to be held in World Trade Centre, Bombay, between 2nd and 4th November 1995 and to be returned after the exhibition. It was alleged that the seized documents reveal that they were to purchase 2 sets of Z-ONE-D Cameras from M/s.Hitachi Denshi Ltd. and that there was no precondition of returning the goods back to Japan in the sale. It was alleged that the declar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

for the goods sold for Export to India, adjusted in accordance with the provisions of Rule 9 of the said rules. Under Rule 9 discounts are admissible if the same were shown as part of the agreement entered. Further, the discounts if any available to a particular importer by way of negotiations are admissible, provided it is not unusual in the course of international trade and the circumstances of the transaction justify a discount. It was alleged that in this case, the manufacturer s (M/s.Hitac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

oices and corresponding Bs/E thus do not appear to represent the transaction value defined under Rule 4 of CVR, 1988. It was based on the invoices raised by M/s.Sansho co. Ltd., Japan, who in turn were authorised agents of the manufacturers. For example, the total per unit price for complete Hitachi Z-ONE-D Camera System is indicated as Japanese Yen 955000 FOB, Japan in both the Price Lists dated 6/2/95 and 18/12/95 of M/s.Hitachi Denshi Ltd. Against this, it was alleged that invoice Nos.8098 da .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nly Japanese Yen 42,350 FOB Japan. Accordingly, the assessable value was sought to be determined on the basis of manufacturer s (M/s.Hitachi Denshi Ltd.) Price Lists dated 6/2/95 and 18/12/95. It was alleged that the supplier, M/s.Sansho Co.Ltd., are authorized Export Agent of the manufacturer and the prices given in the Price Lists are based on the prices given by the manufacturers. It was alleged that the suppliers did not have any ground for supplying the goods on a price lesser than that of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ods sold at the same commercial level as that of the imported goods is also not available. Hence, Rule 7 is not applicable. It was asserted that no quantifiable data with regard to cost of production and cost overheads have been produced by the importers, Rule 7A is also not applicable. Therefore, the value has to be determined under Rule 8 read with Rule 9, using reasonable means consistent with the principles and general provisions of CVR read with Section 14 (1) of the Customs Act. It was ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

quipments Ltd., Mumbai under various Bills of Entry. These prices were taken to be the correct prices of imported goods under Rule 8 of CVR. Duty evaded on the basis of these arguments, for each bill of entry was worked to ₹ 55,95,830/-. On the basis of above a notice was issued; i) Seeking rejection and re-fixing of transaction value ii) Determination of value under Rule 8 iii) Demand of differential duty invoking extended period and interest thereon iv) Confiscation of imported goods v) .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ere a mis-description of the goods imported as was the case in Padia Sales Corporation. It is also not the respondent's case that the particular import fell within any of the situations enumerated in Rule 4(2). No reason has been given by the Assistant Collector for rejecting the transaction value under Rule 4(1) except the price list of vendor. In doing so, the Assistant Collector not only ignored Rule 4(2) but also acted on the basis of the vendor's price list as if a price list is inv .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in ordinary circumstances by the Indian agent itself. There was the additional factor that the stock in question was old and it was a onetime sale of 5 year old stock. When a discount is permissible commercially, and there is nothing to show that the same would not have been offered to anyone else wishing to buy the old stock, there is no reason why the declared value in question was not accepted under Rule 4(1). 4.1 The learned Counsel argued that even if the price list is taken to be true it c .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rpose he relied on the decision of Hon ble Supreme Court in case of South India Television Vs CC Calcutta - 2007 (214) ELT 3 (SC). In the said case the Hon ble Supreme Court has observed as follows: 8. Before concluding, we may point out that in the present case at the stage of show cause notice, the Department invoked Rule 8 on the ground that the invoice submitted by the importer was incorrect. In Eicher Tractors (supra) this Court observed that Rule 4(1) of the Customs Valuation Rules refers .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ged a situation where payment of price stood deferred. Therefore, this decision of the Supreme Court directs the Revenue to decide the validity of the particular value instead of rejecting the transaction value. We wish, however, to clarify that it is still open to the Department based on evidence, to show that the declared price is not the price at which like goods are sold or offered for sale ordinarily, which words occur in Section 14(1). Lastly, it is important to note that in the above deci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e list are not final prices. There are discounts offered to customers like quantity discounts, etc. The Hon ble Supreme Court in the case of Mirah Exports Pvt. Ltd., Vs CC - 1999 (98) ELT 3 has observed as under: 13. In the present case the only evidence that was? adduced by Revenue in support of the charge of under-valuation is the price list No. 8102, dated February 15, 1981 which was found during the course of search in the premises of Skefko, etc. that was conducted by the officers of Enforc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

As pointed out by the Addl. Collector of Customs in his order dated April 16, 1985 the said documents show that 20% discount is allowed to the original equipment manufacturers who import for fitment in their manufactured products and for this build up inventories with sizeable orders after securing favourable prices between various competitors but as regards canvassers and Skefko, who import in even greater bulk for the purposes of only trading, the policy envisaged that they may even secure lo .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

had also imported comparable quantities of similar bearings at the same or lesser prices as that of Mirah Exports and that discount from 50% to 70% on the list prices was the normal invoice price for a number of unconnected importers during the period. The Collector of Customs, while passing the orders dated December 5, 1986 and March 20, 1987 and the Tribunal in the impugned judgment have not taken note of the said documents and the fact that the importers had been given 50% to 70% discount on .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ultation. The supply price to BEL, Doordarshan and Ministry of Broadcasting was planned to be rigged in consultation. Thus, the documentation between them cannot be relied. He argued that the price declared for the assessment amounted to almost 80-85% discount over the list price. In any case even if the appellant version is believable it was not available to all person and was in consideration of the promotion of the sale by exhibition of such camera in India. He also relied on the decision of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

1975 (51 of 1975), or any other law for the time being in force whereunder a duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation or exportation, as the case may be, 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 s .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

f 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 offer for sale. In the present case the company itself had produced a copy of the quotations received by them from M/s. Shun Hing Technology Ltd., Hongkong in respect of the copiers and other items imported alongwith their application for approval of their phased manufacturing programme. The company itself having .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version