1991 (1) TMI 261

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....dated 3-6-1989. The appellants declared a value of US $ 1050 PMT CIF. Having noticed two other importations of somewhat similar goods at US $ 1200 PMT CIF (Polystyrene resin GP-125 and Polystyrene G-144) the Customs felt that the price of the goods was not correctly declared. It was also the feeling of the Customs that High impact polystyrene was generally costlier than the general purpose polystyrene in the normal international price. Therefore, as recorded in the Assistant Collector's order, the assessable value according to the Customs had to be determined under Rule 11 (presumably of the Customs Valuation Rules, 1988) read with Section 14(1) of the Customs Act, 1962. The reason for it recorded by the Assistant Collector was that the dec....

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.... US $ 1200/- under Rule 11 read with Sec. 14(1) of Customs Act, 1962." 3. The Collector (Appeals) upheld the order noting that high impact Grade No. HR 60 is costlier than general purpose polystyrene resin GP 125 and G 144, those two varieties were being sold in India at US $ 1200 in the same week in which the appellants imported the goods and he was unable to accept that the same supplier would charge the two parties so differently or that it represents a normal business trend. (The learned Advocate stated that the same supplier was not involved). Hence this appeal. 4. We heard Shri D.N. Mehta, the learned Advocate. He argued that the Customs authorities wrongly rejected the transaction value comparing incomparables in that the goods....

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....1)(A) and in the background of Section 14(1), can the value be fixed under the Rules. In this legal position, the learned DR submitted, the action of the Customs in holding that the value declared did not satisfy Section 14(1) and, therefore, Rule 11 of the Valuation Rules has to be resorted to, was correct. 6. We have considered the submissions of both sides. We have carefully studied Section 14(1), Section 14(1) (A) and the Valuation Rules. We took particular note of the fact that Lucky Goldstar International Corporation (New Delhi Office) gave a "Certificate to Whom It may Concern" not only certifying the price but also saying that the price of the goods had come down in late August 1989 to till date at US $ 890 PMT. We also keep in m....