2022 (8) TMI 336

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..... e of vessel MV KADMOS. As per Clause of the said MOA, the Light Weight of the vessel was 10,456 MT = 10291.3 LT. As per MOA price was US $ 5,231,000/- and the same was payable by means of Letter of Credit as specified in Clause of said MOA. The vessel was required to be delivered by the Seller to the Appellant at safe Anchorage Alang, West Coast of India as provided in clause of said MOA. As per the said MOA the vessel was to be at the Sellers 'risk' and expenses until delivered to the Appellants. During the course of accomplishing vessel arrival boarding formalities a Trim and Stability information booklet in the name of the vessel MV KADMOS was found on board the vessel which has been found approved by the class surveyor. In the Trim and .....

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..... e delivery of the vessel on 21.11.2011 and since only the agreed reduced price was actually paid by amendment to letter of credit on 19.11.2011, the said reduced price is the transaction value of the vessel under section 14 of the Customs Act, 1962. Learned Commissioner (Appeals) has clearly erred in holding that since at the time of entry of vessel in territorial waters of India, the price was USD 5,231,000/- in terms of MOA, the same has to be taken as the transaction value for the purpose of Section 14 of the Customs Act, 1962 and that the reduced price agreed upon after the goods entered in territorial waters of India cannot be the transaction value. He placed reliance on the following decisions. (a) CC Vs. Jai Bharat Steel Industries .....

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..... hmedabad vs. Guru Ashish Ship Breakers -2003 (157)ELT 277 (Tri- Mum) 7. After hearing both the sides and on perusal of the record, we find that the controversy at hand narrows down to the question whether the transaction value of the vessel is to be priced mentioned in the original MOA or the reduced price indicated in the addendum. We are of the opinion that in light of the statutory provisions, the factum of actual payment of the price in terms of the addendum cannot be ignored while determining the value of the vessel under Section 14 of the Act. We may, however, hasten to add that in such a situation the genuineness and the necessity of reduction in the price are required to be scrutinised very carefully. In the present matter we notic .....

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