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M/s Indo Micronutrients Pvt. Ltd. Versus C.C.E. Indore

2017 (3) TMI 650 - CESTAT NEW DELHI

100% EOU - Valuation - ingots cleared in domestic tariff area - rejection of declared value on the ground that in case of Copper ingots the London Metal Exchange (LME) price is higher than what is declared by the appellant and in case of brass ingots, the price is less than the import value of brass scrap from which such ingots were manufactured - Held that: - There is no indication in the original order that such scrap based ingots are listed in LME and are compared for determining the price. A .....

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ot as well as tariff value for import of brass scrap which were much higher and accordingly, the transaction value is held to be not correct - appeal allowed - decided in favor of appellant. - E/2177/2008-[DB] - Final Order No. 50781 /2017 - Dated:- 9-2-2017 - Mr. S.K. Mohanty, Member (Judicial) and Mr. B. Ravichandran, Member(Technical) Mr. Manish Saharn for the Appellant Mr. R.K. Manjhi (DR) for the Respondent ORDER The appeal is against order dated 08.07.2010 of Commissioner of Central Excise .....

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rass scrap from which such ingots were manufactured. The original authority rejected the transaction value adopted by the appellant in terms of Rule 10A of Customs Valuation Rules, 1988 and re-fixed the value for excise duty based on calculation adopted from LME prices for copper ingots and tariff value for brass scrap. 2. The Ld. Counsel for the appellant submitted that the rejection of transaction value and the re-fixation of value are on these two items is totally in violation of the provisio .....

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ermining the Customs duty and not the transaction value. 3. The Ld. AR reiterated the findings in the impugned order and submitted that the transaction value is not acceptable on the very basis that manufacturer using the imported raw material cannot declare a lesser value of the finished ingots than the price paid for imported scrap. He reiterated that Section 14 provides for redetermination of transaction value based on the concept of consideration payable . The amount actually paid is not the .....

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ce declared by the appellant is much lower than the price of copper ingots mentioned in LME list. We find the price mentioned in LME list cannot be automatically compared to that of sale in domestic market. Further, it is also not recorded whether the copper ingot, price for which was listed in LME is comparable to the copper ingots manufactured and cleared by the appellant. Admittedly, the appellants are manufacturing copper ingots using scrap. There is no indication in the original order that .....

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egal reason to support such calculation. First of all, it is to be noted that the tariff value for this scrap is fixed for determining customs duty on import. This is not to be considered automatically as the cost of raw material suffered by the importer. The original authority erroneously recorded that the value of goods produced cannot be below the cost spent on the raw material. The tariff value fixed for raw material need not be the cost spent on the raw material. There is no evidence to the .....

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