TaxTMI 
TaxTMI 
2006 (8) TMI 342
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....omputer programs from the manufacturer thereof, M/s. Padmini Polymers Ltd. The purchase price was Rs. 640/- per piece. The two exporters had entered into contracts with foreign buyers for export of these CD Roms at the rate of USD 18 per piece, which is equivalent to Rs. 761.40/- at the prevailing exchange rate. (b) Shipping bills were filed, the goods were examined and upon final assessment let export order was passed by the proper officer under Section 51 of the Customs Act, 1962 (the Act). The exporters realised the full export proceeds from the foreign buyers. (c) Based on investigations, show cause notice was issued alleging that the value declared was inflated as the exporter was indulging in export of software, which is otherwise....
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....oncerned how and at what price the manufacturer had obtained the masters. He submitted that the exporters are not concerned with the cost of manufacture, but only with the purchase price, which is undisputed. He further submitted that there is no allegation that the exporters are related either to the manufacturer or to the foreign buyer and both the transactions are at an arms length, where price is the sole consideration and relies on the following decisions: (1) Aggarwal Distributors Pvt. Ltd. v. C.C. [2000 (117) E.L.T. 49 (Tri.)] (2) Akshay Exports and Industries v. C.C. [2003 (156) E.L.T. 268 (Tri.) (3) Globe Entertainments v. C.C. [2005 (180) E.L.T. 258 (Tri.)] (4) Cora Chem v. C.C. [2002 (146) E.L.T. 718] (5) Suresh Jhunjhu....
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.... within 150% of the manfacturer's price, the same cannot be rejected. The said Circular is binding on the department and has to be and been consistently followed in the decisions relied upon by the ld. Advocate appearing for the respondents. We do not see any reasons to take a different view. (c) The inquiries with M/s. Accidental Software cannot be the basis for rejecting the FOB value under Section 14 of the Act, which provides that the value shall deemed to be the price at which such or like goods are ordinarily sold or offered for sale, for delivery at the time and place of exportation, as in this case in the course of International Trade where the buyer and seller have no interest in the business of each other and the price is the so....
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....lity of the goods, being inferior. (e) Under DEPB Scheme, as in this case, the goods for export are neither dutiable nor prohibited. Therefore, in such cases, the provisions of Section 113 of the Customs Act, 1962 are not applicable as held by the Hon'ble Supreme Court in Prayag Exporters (supra). This is also the view taken by this Hon'ble Tribunal in Suresh Jhunjhunwala (Supra) and other decisions which being bound we respectfully follow. (f) As regards fixation of DEPB eligibility pleaded by Revenue, we find that this Tribunal in the case of Kobian ECS India Pvt. Ltd. [2003 (157) E.L.T. 662] had after examining the provisions of DEPB Scheme, the instructions on the subject and the law found that a declaration for DEPB is not a declar....