1998 (9) TMI 230

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.... [Order]. - Appellant imported 108 MT of Caprolactum of Holland origin and presented two Bills of Entry on 17-9-1991 along with invoices declaring the value as US $ 1680 PMT CIF. It was found that two purchase orders had been placed on the supplier on 10-7-1991 and 15-7-1991 for import of total quantity of 108 MT of Caprolactum at US $ 1750 PMT CIF. The Custom House indicated that the assessabl....

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....ended to read the lower price. It was on the strength of this letter the appellant on 23-8-1991 amended the purchase order and obtained amended letter of credit on 28-8-1991. The goods had been shipped on 23-8-1991. The invoices issued by the supplier showed only the lowered price. 3. According to the lower authorities amendment of the letter of credit took place subsequent to the date of sh....

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....stand by the original agreed price and insist on supplying the goods at that price; however, such a stand which may perhaps be tenable in law, would affect the reputation and goodwill of the supplier. It was in these circumstances that the supplier took note of the fall in International price and informed the appellant that he would be invoicing the goods at US $ 1680 PMT CIF. There is no suggesti....