TaxTMI 
TaxTMI 
TaxTMI 
1991 (9) TMI 200
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.... Grade ex-M.V. OCEAN STAR from Yugoslavia declaring at a CIF price of US $ 477.44 per Metric Ton and for the whole consignment of 1850 MTs which is equivalent to Rs. 1,10,27,016/-. On arrival of the goods it was noticed by the appellants that the goods were damaged on the Voyage due to bad weather and other causes. Accordingly, they claimed 50% abatement in value of the goods. A report of Surveyors was also filed in support of their contention that the Cargo was partly damaged. In a letter dated 17-10-1985 addressed to the Assistant Collector it was stated that due to faulty loading of the Cargo in the Vessel approximately 300 tons of the Cargo was lost and the whole Cargo had depreciated in value by about 60% due to mixing of the Cargo wit....
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.... 6.4%, the proportionate reduction in value to the extent of 30% would, therefore, be reasonable and, accordingly, he ordered for abatement of duty on account of damage/deterioration of the goods by reducing the value of the goods to the extent of 30% under Section 22(3)(a) of the Customs Act, 1962. This view was confirmed by the Collector (Appeals). Hence, this appeal. 3. Shri L.P. Asthana, learned Counsel, appearing for the appellants, submitted that neither copy of the test report relied upon by the Department was supplied to the appellants nor the sample taken for analysis could be considered as representative of the whole lot. He said that percentage of contamination whether 6.4% or 10% is immaterial as in any case it would render the....
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....of the Customs Act. He contended that part of the contract is yet to be completed and the rebate given by the Supplier works out only 27% if the entire contract is taken into consideration. He said that the goods have not become useless and in fact they have been taken in use and the Department was justified in giving proportionate abatement based on chemical report to the extent damage was caused. 5. In reply, Shri Asthana said that credit was given by the supplier only for damaged goods and he drew our attention to the Credit Note where it was specifically mentioned that 'Credit Note for damaged Material'. The plea of Credit Note was taken at the earliest stage as can be seen from the order of the Deputy Collector but same was not consid....
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....irst instance, the Department was justified in giving 30% reduction in value for the purpose of giving abatement under Section 22 of the Customs Act/Under these circumstances, we do not find any infirmity in the orders passed by the authorities below and, accordingly, the appeal filed by the appellants is hereby dismissed. [Assent per: P.C. Jain, Member (T)]. - I agree with the conclusion reached by my learned brother Shri G.A. Brahma Deva for different reasons set out below :- 6.1. The appellants stated before the original authority that "the main impurities were soda ash, sulphur and iron fillings etc., and that too around 9 to 11%, that to remove iron from the P.V.C. resins and to make P.V.C. pipes, an additional cost at Rs. 6.30 per k....