9911796707
TMI Blog2023 (3) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... 33/29.11.2012 for import of 2496.540 MT, 1318.5490 MT and 2161.230 MT (totalling 5976.31 MT) of 'prime cold rolled sheets (non-alloy)' from Ukraine supplied by M/s Metinvest International SA, Switzerland, against sales contracts no. MI-AS0709CRC and MI-AS0709CRS both dated 7th September 2012 and irrevocable letter of credit no. 0023001330112 dated 11th September 2012, and enhancement to US$ 590/MT for of 'prime cold rolled coils (non-alloy) and US$ 570/MT for 'prime cold rolled sheets (non-alloy)', sought restoration of declared values before the first appellate authority. The continuation of the detriment by Commissioner of Customs (Appeals), Mumbai Customs Zone-I1 is under challenge before us. 2. The original authority had held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for space before the footlights. According to customs authorities, the declared value was not consistent with 'contemporaneous imports' of May 2012 priced at US$ 670 to US$ 672 per MT for 'sheets' (prime and others) and Metal Bulletin prices for 'coils' in the range of US$ 625 to US$ 630 (FOB) per MT for September 2012. On the finding that they had failed to furnish the final payment certificate or bill of exchange to establish the genuineness of the value as declared, these were considered to suffice for invoking rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 thus '8. ..... Since the value cannot be determined under Rule 3(1), the same needs to be re-determined as per 3(4) by proceeding sequentially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Metal Bulletin prices for the week of 10 Sept. 2012 i.e. the week in which the Letter of Credit was opened, it was noticed that the FOB value from CIS countries of Cold Rolled Coil was between 625-630 USD PMT. Hence the base FOB price for Prime CR Coils was taken as an average of the range 625-630 USD PMT which comes out to be 628 USD PMT approx. Further, as an assessment practice discount of 10% can be given on this price as the goods were of Ex-stock. Therefore the FOB price of CR Coils can be determined logically at USD 565 PMT. Since the total quantity of consignment was huge i.e. 6,790.250 MTS a further USD 25 PMT (4.5% approx.) discount can be given on CR Coils Ex-stock and the value of CR Coils Ex-stock can be redetermined at (565 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .' 5. In endorsing the re-determination, and by echoing of the findings of original authority except for dropping of some sentences and exclusion of some expressions, the first appellate authority has categorically concluded that rule 4 and 5 do not offer resolution, owing to non-availability of value of clearances of 'identical' or 'similar' goods, which is in stark contrast with the justification recorded for invoking of rule 12 of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. 6. The range of US$ 2 in the pricing of the 'contemporaneous imports' for the converted values in the enumerated bills of entry does not appear to be compatible with the exchange rates prevailing in May 2012. Furthermore, the first app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f, allowance. The allowance for quantity at 4.5% is equally cryptic, as also the further abatement for not being coil, assigned to sheets. The addition of US$ 50 per MT towards freight is not compatible with the corresponding provision in Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 especially as actual freight was easily ascertainable. 9. It also appears from the alternative computation in the order of original authority, based on declared value of 'hot rolled sheets of non-alloy steel' carried in the same vessel, and which had been accepted as transaction value, to which the proportion of difference indicated by prices in the Metal Bulletin was applied for arriving at the same computed value as supra, that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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