TMI Blog2008 (4) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... oms Tariff Act, 1975 and Central Excise Tariff, 1944 respectively. The unit price of the said goods was declared at US$ 13.2 per kg. 3. Allegedly the respondent had imported the same goods from the same supplier earlier @ US$ 18.7 per kg. 4, The Deputy Commissioner of Customs in his order dated 22 nd March, 2000 opined that the transactional value declared by the importer should be rejected and Rule 5 of the GATT Valuation Rules, 1988 shall be applied ordering to load the value to US$ 18.7 per kg. It was directed that the bill of entry should be assessed accordingly. 5. On an appeal preferred thereagainst by the respondent, the Appellate Authority being the Commissioner of Customs (Appeals) affirmed the said findings in terms of his order dated 3 rd August, 2000. By its judgment the appellate authority rejected the contention of the appellant that the onus was on the department to show that the invoice price was not genuine and arrived at the conclusion that since the respondent was the only importer of the said goods, they were 'the best person to obtain conclusive proof of downward pricing pattern in the international market'. However, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of each other and the price is the sole consideration for the sale or offer for sale: Provided that such price shall be calculated with reference to the rate of exchange as in force on the date on which a bill of entry is presented under Section 46, or a shipping bill or bill of export, as the case may be, is presented under section 50.(1A) Subject to the provisions of Sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules made in this behalf. 10. We also quote hereinbelow the relevant portion of Rule 4 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, as it stood at the relevant time: "4. Transaction value. - (1) The transaction value of imported goods shall be the price actually paid or payable for the goods when sold for export to India, adjusted in accordance with the provisions of Rule 9 of these rules. (2) The transaction value of imported goods under Sub-rule (1) above shall be accepted: Provided that - (a) there are no restrictions as to the disposition or use of the goods by the buyer other than restrictions which - (i) are imposed or requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of similar goods imported into India at the same time as the subject goods. Where, however, there are no contemporaneous imports, the value is to be determined in terms of Rule 7 by a process of deduction as envisaged therein. Yet again an alternative mode for determination of the transaction value has been provided in Rule 7A. If none of the aforementioned provisions can be taken recourse to, the authority may determine the transaction value in terms of Rule 8 of the Rules, using reasonable means consistent with the principles and general provisions of the rules and sub-section (1) of Section 14 of the Act and on the basis of data available in India. 16. Recourse to the aforementioned Rules are to be resorted to if the transaction value cannot be determined in terms of sub-section (1) of Section 14 of the Act. 17. By its letter dated 13 th November, 1999 the respondent categorically informed the Assistant Collector Customs, Mumbai, that in the international market the raw material prices were declining every day. Before the said authority even instances were given in regard to the subsequent transactions to show that the 'shipper' had further reduced the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso acted on the basis of the vendor's price list as if a price list is invariably proof of the transaction value. This was erroneous and could not be a reason by itself to reject the transaction value. A discount is a commercially acceptable measure which may be resorted to by a vendor for a variety of reasons including stock clearance. A price list is really no more than a general quotation. It does not preclude discounts on the listed price. In fact, a discount is calculated with reference to the price list. Admittedly in this case discount upto 30% was allowable in ordinary circumstances by the Indian agent itself. There was the additional factor that the stock in question was old and it was a one time 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 any one else wishing to buy the old stock, there is no reason why the declared value in question was not accepted under Rule 4(1)." 20. The same principle has been reiterated recently in Commissioner of Customs, Calcutta vs. South India Television (P) Ltd. : 2007 (214) E.L.T. 3 (S.C.) holding :-" Therefore, the transaction va ..... X X X X Extracts X X X X X X X X Extracts X X X X
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