2015 (10) TMI 602

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....MoA) dated 26.4.2001. The Customs Officer had boarded the Vessel on 1.5.2001. Subsequently, IGM was amended to substitute the appellants- name, and declared consideration of US $ 8,45,000/- as per MoA dated 3.5.2001 with the foreign seller M/s Dragon Navigation Inc., Liberia. 2. A show cause notice dtd 22.3.2005 was issued proposing the value for the purpose of assessment of the subject vessel should be US $ 9,54,044/- as per first MoA dated 26.4.2001. It has been alleged that the price initially agreed US $ 9,54,044/-when it was arrived on 30.4.2001 would be accepted and there is no reason to consider the value as per second MoA on 3.5.2001, as it was finalised after importation. The Adjudicating Authority finally assessed the Bill of E....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e. It is further submitted that price would be determined prevailing at the time of importation on 30.4.2001 and the subsequent agreement dated 3.5.2001 is domestic sale which cannot be transaction value. He particularly relied upon the decision of the Larger Bench of the Tribunal in the case of Commissioner of Customs, Bhavnagar, Vs. Lucky Steel and others - 2007(02)LCX0429. He also filed compilation of case laws. 5. After hearing both the sides and on perusal of records, we find that M/s Madhav Industrial Corporation entered into agreement with the foreign seller by MoA dated 26.4.2001 to purchase the old Vessel for a consideration of US $ 9,54,044/- and the vessel was arrived on 30.4.2001. After importation of the goods, the foreign s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t will be relevant and taken into consideration for the purpose of determining assessable value under Section 14 of the Customs Act, 1962. However, if there is any variation in price after the date of import the same shall not be relevant for the purpose of determining assessable value under Customs Act unless the reduction is on account of facts that the goods are not the ones which have been contracted for or that there has been serious breach of the terms of the contract which makes the contract void/voidable. In the latter case the new/ reduced price under the new/revised contract will admissible." 7. The Learned Advocate strongly relied upon the decision of the Hon'ble Supreme Court in the case of Chaudhary Ship Brokers (supra). In ....