2006 (6) TMI 246

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....ndum of agreement between the seller and the appellant-importers for purchase of the impugned vessels for scrapping. The respondents have asked for adjournment, which is declined as it is felt after hearing the learned SDR for sometime that the matter is required to be referred to a Larger Bench in view of the conflicting decisions by different co-ordinate Benches of the Tribunal. 2. The learned DR arguing on behalf of the department states that in the following orders passed by different Benches of the Tribunal, it has been held that variation in the value of the vessels through addenda to the memoranda of agreement, which reduce the value, cannot be allowed for the purposes of customs valuation : - (i)    &n....

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....kers (cited supra), it has been held that no provision was there in the original agreement for reduction in price for the reasons stated under the addendum and hence price of goods, as stated in the original agreement which was available at the time of import of goods, has to be accepted as the customs value under the Customs Valuation Rules, 1988. 3. We find that there are contrary decisions of other Benches of the Tribunal where under variation in value has been allowed on the basis of addendum to the original memorandum of agreement in the following cases :- (i)      CC, Ahmedabad v. Atam  Manohar Ship Breakers Ltd. - 2003 (156) E.L.T. 151. (ii)    Jai Jagdish Ship Breakers v. CC....

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....ess there is a change in the LDT, in the absence of price variation clause in the contract, no deduction in value can be allowed since under the relevant customs law, the value at the time of importation is relevant. He also cited the decision of the Tribunal in the case of Malwi Ship Breaking Co. v. C.C. & C.E. (A), Ahmedabad reported in 1999 (111) E.L.T. 417 (Tri), whereunder it was held that duty is to be assessed only in terms of LDT referred to in the stability book. He also refers to the Hon'ble Supreme Court's decision in Udyani Ship Breakers Ltd. v. C.C. & C.E., Rajkot - 2006 (195) E.L.T. 3 (S.C.), which upholds valuation on the basis of value prevailing on the date of importation and disallows abatement of duty since the importer h....