TaxTMI 
TaxTMI 
1996 (8) TMI 201
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....er gross of Bolt Ring and HK $ 7.3 for 100 Meters of Chain. On objection being raised about the value, appellants waived show cause notice but gave written submissions. Representative samples were also taken and weighed. The additional Collector accepted the declared value in relation to Bolt Ring but loaded the value of Chain from HK $ 7.3 per 100 Meters to Rs. 56.36 per kg. weight. This order is now challenged. 2. The Additional Collector noticed that in regard to chain, unlike in the previous importation, specification and design number of the chain had not been declared by the appellants. On weighment and calculation it was found that the declared value was Rs. 25.58 per kg. which was even less than the price of Rs. 28.18 per kg....
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....authority should have accepted the invoice value for Chain also. 5. Burden of displacing the invoice price is certainly on the Department. It can be displaced on values of comparable imports of identical or similar goods. This proposition is based on the principle that the invoice value reflecting the true transaction value should, ordinarily be accepted, except in the presence of special circumstances like the transaction not being at arms length, special relationship between the importer and supplier, comparable imports at higher price or other reliable circumstances. This is so, if the invoice and other relevant documents are ex facie reliable and proper. 6. In Shivshakti Enterprises v. Collector of Customs - 1991 (52) E.....
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....pecification, brand name and other particulars. 7. The value to be attached to invoice price may depend on a variety of circumstances. Inadequate, incomplete or incorrect or misleading description may affect the reliability of the invoice price. It must be appreciated that customs authorities do not inspect and examine all the goods imported and conduct only sample checks. Incorrect, inadequate or incomplete description in cases where the goods are not inspected and checked may mislead customs officers. It may depending on the facts and circumstances, also indicate a deliberate design to suppress the true state of affairs and to mislead customs officers. In such cases the invoice and the price declared in the invoice will have very ....
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....tin (UK) showed the price of Brass Scrap "Honey" to be US $ 1700 CIF PMT (i.e. Rs. 28.18 CIF per kg.). The declared price of Brass Chain was HK Dollar 7.3 for 100 Mtrs. This was found, on weighment and calculation, to be equal to Rs. 25.58 CIF per kg. This would show that the finished goods [were] priced less than the metal scrap. The Assistant Collector took the basis of scrap value of Rs. 28.18 per kg., added 100% towards cost of manufacture and arrived at the value of Rs. 56.36 per kg. CIF. According to learned Counsel for the appellants, the value is defective for two reasons. He contended that the Brass material in the goods was of very inferior quality and the Metal Bulletin price adopted was for "Scrap Honey" which is metal of high q....
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....oods." In Sippy Pramod Steel Alloys Pvt. Ltd. v. Collector of Customs - 1990 (45) E.L.T. 444 (Tribunal), Copper Dross was imported and the Additional Collector relied upon the Metal Bulletin relating to the value of Copper Dross and arrived at the assessable value. This method was challenged by the appellants alleging that the Bulletin provided only a guideline relating to the price of the metal and is meant only as a basic guideline for the calculation of prices which depend upon several other factors. The Tribunal held that in the absence of evidence of value of identical or similar goods imported contemporaneously and in view of the evidence produced by the appellants showing that similar prices had been accepted by the Bombay Custom ....