TMI Blog2023 (6) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... that any consideration over and above the agreed purchase price has been paid by the importer to the foreign seller. Revenue has sought to assess higher duty only on the basis of commercial invoice submitted vide letter dated 4.7.2011 wherein details of additional LDT of 401.323 MT is mentioned. There is otherwise no corroboration whether LDT mentioned in the MOA and survey report is inclusive of 401.323 MT or otherwise. It is observed that parties have agreed upon a lump sum price of USD 5,815,747 for the ship as a whole and absent any allegation or evidence of extra consideration having been made by the importer over and above the said price, transaction value as declared by the importer has to be accepted. Lower authorities clearly e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 12/SBY/2012-13 dated 10.01.2013 passed by the Assistant Commissioner of Customs, Bhavnagar. 1. Briefly, facts of the case relevant to the matter are as under: 1.1. Appellant is engaged in importation of old and used ships/vessels for breaking purpose, they contracted for purchase of ship MV Ocean Beauty for breaking with M/s. Navamosa Navigation S.A., P.O. Box No. 556, Charlestown, Nevis (the seller) and entered into Memorandum of Agreement (MOA) dated 28.7.2011 to the tune of USD 5,815,747. The Light Displacement Tonnage (LDT) of the vessel stated in the said MOA was 12310 MT/12116.14 LT; trim and stability book and the surveyor report dated 14.9.2011 also stated the same LDT of the Vessel as was shown in the MOA dated 28.7.2011. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmine the value of the subject as USD 6005347.00. The assessable value has been increased by Rs. 8914139/- since the actual weight of the vessel is found higher than that mentioned in the MOA. Taking into consideration, the findings and discussion above, this office is finally assessing the Bill of Entry No. SBY/175/2011-12 dated 22.09.2011 for the vessel M.V. Ocean Beauty by including the additional 401.323 MT Steel Plates on the tank top over and hence you are requested to pay the differential duty amount of Rs. 14,52,064/- 1.3. The final assessment Order dated 10.1.2013 was passed essentially based on the above reasoning which was upheld by the impugned Order. Being aggrieved with the said impugned order the appellant filed this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and above the agreed purchase price has been paid by the importer to the foreign seller. Revenue has sought to assess higher duty only on the basis of commercial invoice submitted vide letter dated 4.7.2011 wherein details of additional LDT of 401.323 MT is mentioned. There is otherwise no corroboration whether LDT mentioned in the MOA and survey report is inclusive of 401.323 MT or otherwise. Be that as it may, it is observed that parties have agreed upon a lump sum price of USD 5,815,747 for the ship as a whole and absent any allegation or evidence of extra consideration having been made by the importer over and above the said price, transaction value as declared by the importer has to be accepted. Lower authorities clearly erred in load ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ported in the year 2003 when the tariff was changed and the duty was required to be paid only on the basis of ad valorem as also on the basis of LDT. It was in these circumstances that LDT gained importance for the period prior to 2003 and was required to be correctly arrived at, as duty was ad valorem + Rs 1400/- per Light Displacement Tonnage. In the present case the duty is not relatable to LDT. The memo of agreement arrived at between the two parties also does not refer to any fact showing that the price of the ship is proportionate to LDT of the said ship. The lower authorities have also not referred to any evidence that memo of agreement does not reflect the correct position. 5 In view of the above discussion, we find no merits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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