1997 (7) TMI 356

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ier on 19-12-1988. On further enquiry it was found that the goods were originally shipped to M/s. Bombay Oil Industries @ US $ 1,400 PMT as per contract dated 3-9-1988 for 350 MT for shipment during September-October, 1988 against payment by confirmed irrevocable letter of credit. The goods had also been shipped as per terms of contract. The related Bill of Lading was dated 28-10-1988. Letter of Credit had also been opened for the value of the goods @ US $ 1,400. However, due to certain discrepancies in the shipment Bombay Oil Industries cancelled the L/C and their bankers returned the shipping documents to the Yugoslav suppliers by which time the goods had already been shipped. The appellants say that thereafter the Yugoslav supplier offer....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r having been upheld by the Commissioner of Customs (Appeals) in the impugned order, the present appeal before the Tribunal has been filed. 3. We have heard Shri Mayur Shroff ld. Counsel for the appellants and Shri Gurdeep Singh, ld. DR for the department. 4. The question is whether the price of the HDPE imported declared as US $ 1,200 can be accepted as its assessable value under Section 14(1) of the Customs Act, 1962 and Valuation Rules. The appellants contend that it is a price arrived at on the basis of negotiation with supplier at arms length and should be accepted as the transaction value for the goods under Rule 4 of the Valuation Rules. However, we find that the circumstances of this negotiation is crucial to the issue. ....