TaxTMI 
TaxTMI 
1999 (12) TMI 215
X X X X Extracts X X X X
X X X X Extracts X X X X
....ustom House was of the view that this value was too low, having regard to the prevailing price of scrap as quoted in the publication of the London Metal Exchange (LME for short). 3. Though the departmental representative is not very clear about this, the Tribunal's order which we shall refer to later, indicate that the Assistant Collector confirmed the assessable value to be US $ 354.38 per metric tonne. This value was confirmed by the Collector (Appeals). The importer carried the matter to the Tribunal. The Tribunal did not approve the method and value adopted by the Assistant Collector. It found that he did not attempt to determine the value by applying the Valuation Rules sequentially, as Rule 3 requires, nor did he indicate the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the specifications Rack. The sale from the US suppliers to the UK buyer was US $ 220 per metric tonne, and the sale from UK to Indian firm was US $ 230.25 per metric tonne CIF, at the time, he says, when the international price of the material vary between US $ 525 and 550 per metric tonne, this being figures that are indicated in the London Metal Bulletin. He finds that the contract itself was only produced by the importer in August, 1991 (by the Indian firm to the Customs) although was entered into in April 1991 and the original contract has not been produced. He also finds that the goods which were supplied were not of RACK specifications but inferior and the importer had not questioned this discrepancy. On these facts, he concludes tha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lector for not accepting the transaction value was that was the price compared with the price of the RACK lead. He found two products not to be comparable and therefore found the basis for not accepting the transaction value. He was of the view that the prices in the LME were not to be accepted for which he cited the decision of the Tribunal in Ruchi Associates v. CC - 1992 (59) E.L.T. 155 and Kay Pee Enterprises v. CC., 1990 (45) E.L.T. 644. He was of the view that the claim that the goods were Rack grade was result of a typographical error and he accepted the contention of the appellant before him that scrap was obtained from firing ranges and consisted fired bullets which contained mud and sand. He found this contention to be corroborate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tability of Collector's finding that there was no basis to reject the transaction value. The ground is that the LME prices which reflected the market price prevailing will be free from bias and show the trend of prices. It is difficult not to accept this contention. The LME is the market place for the great deal of trade in metal both prime and scrap and its bulletins show the prices at which contracts for sale and purchase of these commodities are being concluded. If such prices reflected, as they do, the generally prevailing prices in a large number of transaction for these goods and explanation will be required for any tansaction which is special and vary with this price. We must not be understood as saying that no transaction can ever t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Rule 7) was not questioned by the advocate for the respondent. He did however question the applicability of the price for scrap of Rack specification to scrap which was not of that specification containing a much lower proportion (67.5%), as against Rack is 100% lead. Neither side was able to show any particulars or any evidence showing the prices at which the scrap of the kind imported was being sold. On the other hand, advocate for the respondent says that this was a unique kind of scrap. The Collector (Appeals) records the submission of the importer that this was the scrap obtained by collecting spent bullets from firing ranges. It is on the face of it somewhat difficult for us to accept, on the material before us, that anyone would go t....