9911796707
TMI Blog2017 (6) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... eal. The parties are referred hereafter as assessee and department for the sake of convenience. C/156/2008 & C/208/2006 2. The brief facts of the case are that the assessee imported mulberry raw silk vide Bill of Entry dated 17.10.2005 declaring the unit price of USD 15.25/kg for 9000 kg, country of origin being China. As the department noticed that contemporaneous imports were at higher price of USD 22-25 per kg, the assessee was directed to state why the invoice value declared by them should not be rejected under Rule 10A of the Customs Valuation Rules 1988. They replied stating that they had entered into bulk contract for 1,35,000kgs (Contract No.25ZHC S 115 dated 24.06.2005) as the reason for the price structure. They requested for pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e proper officer should not enhance the value arbitrarily, but give reasons as to why the transaction value is rejected. It was pointed out by the Learned Counsel that in the case of Commissioner Customs, Chennai Vs. Pushpanjali Silks Pvt Ltd - 2006(202) ELT 80 (Tri-Chennai) where the facts are identical, the Tribunal set aside the enhancement of value. That the said order was appealed by the department before the Hon'ble Apex Court and the same was dismissed vide judgment reported in 2007 (207) ELT A 100 (S.C). 4. Against this, the Learned AR Shri A. Cletus reiterated the grounds of appeal. He submitted that the Commissioner (Appeals) reduced the enhancement to USD 17 per kg. for the reason that the assessee had accepted this enhanced val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of supplier being related. When all such elements do not raise any doubt, in our view the enhancement cannot be based merely on contemporaneous imports. The time, place, the relationship of parties as well as the quantity to be supplied are all factors which have influence on the price fixed in the contract. This being so, the enhancement is without basis. The view of the Commissioner (Appeals) that since the assessee has accepted or rather not agitated further the enhancement of value to USD 17 per kg in the past also cannot be a ground to reject the transaction value. On identical set of facts, the Tribunal in the case of Pushpanjali Silks Pvt Ltd (supra) has held that the transaction value cannot be enhanced merely basing on cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
