TMI Blog2000 (7) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... rt the Import Policy) and were made in discharge of the export obligations cast upon the appellant under Advance Intermediate Licenses (in short AILs) issued to it by the Licensing Authorities of the Govt. of India. Under para 121(a) of the Import Policy, all the said supplies affected by the appellant against the said licenses issued under the Duty Exemption Scheme were "Deemed Exports". 2.3The first order entered by the applicants with the VSP was on 5-5-1992, whereas particular price was contracted and the goods were supplied at that price. There is no dispute about the supplies made under the said order. Thereafter, the applicants entered into four more orders with VSP wherein the price contracted between the two was reduced on account of the circumstances as explained by the Advocate. He elaborated that the advance licences held for import of refractories were surrendered by VSP and against the same, advance intermediate licences were issued in favour of the applicants for import of its inputs. Against each of these licences issued to the appellants, they were placed under an export obligation for supply of refractories to VSP on deemed export basis. Against these licences, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t classes of transactions and the buyers of the said two categories are two different classes of buyers. Elaborating on his arguments he submits that the orders were procured by the appellants against global tender and during the process of international competition. He submits that the advanced intermediate licences issued in favour of the appellant carried with it an export obligation which was required to be discharged by the appellant by supplying the refractories manufactured by it to VSP. Selling prices to such buyers as deemed exports cannot simply be compared with selling prices normal for the local market. In any case he submits that by no stretch of imagination advanced intermediate licences issued to the appellants can be treated as additional consideration in terms of the Central Excise (Valuation) Rules, 1975. The said licences were issued by the statutory authorities in accordance with the statutory provisions contained in para 55 of the Import Policy. It is only that by raising all these advanced licences the appellant availed exemption from customs duty on imported inputs, which brought down the total cost of the final product and made it possible for the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated as additional consideration and justified the order enhancing the assessable value. 7.As regards limitation, Shri Das submitted that there is a clear observation made by the Commissioner that the assessments were provisional which were finalized only in the year 1996. The evidence now placed by the appellant cannot be appreciated by him and the same being in contradiction to the observation made by the adjudicating authority and relatable to factual position, can only be verified at the original level. 8.We have considered the submissions made from both the sides. We find that the issue involved in the present appeal is as to whether the import of raw materials by the appellants and the clearances of the same without payment of customs duty, in lieu of the licences surrendered by VSP, which ultimately led to reduction in the cost of the final product, can be considered as an additional consideration towards the value of the goods. We find that the ld. Advocate has relied upon a number of earlier decisions of the Tribunal. Though we find that none of the said decisions so relied upon directly relate to the situation as is present in the instant case, none the less the rati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above discussed judgments is to the effect that benefit received under an altogether different scheme promulgated by the Govt. cannot be considered to be a part of total sale value of the goods or the total sale turnover. In the instant case the appellant have availed the benefit from the customs duty under the advanced intermediate licences issued to them by the statutory authorities in accordance with the relevant provisions of the import policy. Such benefits are under the duty exemption scheme and have to be treated as statutory benefits allowed by the statutory authorities. The same can never be placed upon the platform of 'additional consideration' flowing to the manufacturer from the buyer, directly or indirectly. It has so happened that because of the benefit of the customs duty in terms of the said advanced licences, the appellants have been able to import the inputs without corresponding payment of customs duty which has resulted in lower cost of their final product. As the appellants could afford to sell their goods at a lower price they have offered the same to VSP, which was accepted by them and the contracts finalised. In these circumstances it cannot be said that ..... 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