TaxTMI 
TaxTMI 
2006 (6) TMI 390
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....centages of 25 elements in the lead concentrate. The contract also specifies that the price payable shall be for Lead and Silver metal contents as detailed below after deduction of treatment charge and agreed penalties : - Lead : 95% of the actual lead content in the concentrate (minimum deduction 3 units per DMT) payable at LME cash settlement price for each market day averaged for Lead as published in the "Metal Bulletin", London for the quotational period. Silver : (if any): 95% of the actual silver content in the concentrate (minimum deduction 30 grams per DMT) payable at London Spot (in US Dollars) quotations averaged for the quotational period. 2. We find that the rationale for the terms of ....
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.... of Polish origin, the price for the Spanish origin was provisionally fixed taking the lead price from the Metal Bulletin at 548 US$ and the price of Polish origin was taken as 540 US$. In the first case, the lead percentage was 72% and in the second it was 73.73%. The final invoice has been worked out taking percentage of lead as 72.326% in the first case and 74.018% in the second case. However, the final price has been calculated on the basis of lead price @ 516.38 US$ as per the terms of the contract which specifies that the price is to be adopted for the quotational period, which is specified in the contract as the month after the month of arrival of the imported cargo at the discharge Port. Though the lead percentage is slightly higher....
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....ny of the exceptions as given in Rule 4(2) of the Customs Valuation Rules, 1988. 6. The present appeal filed by the applicant Commissioner challenges the impugned order-in-appeal on the ground that as per the ratio of the Hon'ble Supreme Court's decision in the case of Rajkumar Knitting Mills (P) Ltd. v. CC, Bombay - 1998 (98) E.L.T. 292 (SC), the time of importation is relevant for the purpose of determination of value of the imported consignments. The learned SDR arguing for the department also relies on the said decision of the Hon'ble Supreme Court in the case of Rajkumar Kintting Mills (cited supra), and states that the value should be calculated on the price of lead prevailing in the London Metal Exchange on the date of import....
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....arned SDR that the price of lead as reflected in the Metal Bulletin for the date of importation may be taken as the basis of Customs value is not acceptable as the goods under import are lead concentrate comprising many other elements and the Metal Bulletin does not provide price for such a product. We also note that the contract provides for determining value for sale on the basis of a pre-determined formula based on the actual lead/silver content and prevailing price of lead/silver in the month after discharge. The terms of the contract are clear and definite and the value in each case of sale can be worked out based on these four determining factors. The terms do not also provide any scope for manipulation. The value depends on 95% of ac....