1991 (5) TMI 148

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the supplier. However, after disallowing the discount of 41½% the Customs worked out the assessable value as Rs. 11,77,681/-. The appellants claimed refund of duty amounting to Rs. 23,091/- on the grounds that the assessable value ought to have been worked out after allowing the further discount of 4½%. The Asstt. Collector rejected the claim for refund on the grounds that the additional discount of 4½% was not deductible for arriving at the assessable value since it was in the nature of a special discount having been extended on the grounds of long standing business dealings between the buyer and seller. The appeal filed against the Asstt. Collector's order was also rejected by Collector (Appeals) on the grounds ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rdial dealings with the importers would be admissible for the purpose of computation of the assessable value. 5. It has been contended on behalf of the appellants that in this case there being no mutuality of interest between the buyer and the seller invoice price having been arrived at as a result of negotiations in the ordinarily course of trade had to be deemed as the assessable value under Section 14(1) (a) of the Customs Act, 1962 irrespective of whether the same discount was given to the others or not. In this regard, it is seen that in the case before us when the contract was entered into the suppliers had agreed to extend a discount of only 8%. However, after receiving confirmation that the appellants had been issued an import li....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he authorities the reduction of 20 per cent was granted as a special case. The supplier in their letter dated November 11, 1967 has stated that this was the only order received by them from India and executed by them at that price - US $ 28,000 and that in the case of new orders their ruling price was to apply. In other words they have recorded a finding that the usual price of this machine was US $ 34,000 and that the price of US $ 28,000 charged from the petitioners was by way of a special case or in other words a special price for petitioner's only. On such findings the value of the machine, i.e. US $ 34,000 in my view could be assessed." 6. On the ratio of the decision quoted above, we are of the view that the special discount of 4&f....