TaxTMI 
TaxTMI 
2016 (9) TMI 930
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....al Duty (P.D) Bond and Revenue Deposit towards the differential customs duty computed on the enhanced value; • As per the final invoice submitted by the appellant, the Fe content was 57.12% and the unit rate @ USD 114 PDMT; • The Bank Realization Certificate is also per the final Invoice i.e @ USD 114 PDMT; • Fe content as per Customs Laboratory Report was found to be 58.8%; • According to the revenue neither the enhanced value adopted by it at the time of provisional assessment of the Shipping Bills nor the value as per the final invoice produced by the appellant could be taken as the correct transaction value in terms of Section 14 of the Customs Act, 1962 and hence the same is liable to be rejected as per rule 3(3) of the Customs Valuation (Determination of value of export Goods), Rules, 2007 (referred to as CVR and liable to be re-determined as per Rule 4 to 6 of CVR sequentially; • However, Rule 4 of CVR was discarded on the ground that it was not technically feasible to find value of comparable goods/contemporaneous exports; • Rule 5 of CVR was discarded on the ground that it is no....
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.... • The transaction value was not accepted by revenue and the shipping bill was assessed at USD 90 per DMT based on prevailing Metal Bulletin Prices; • Duty was collected on the enhanced unit price; • As per the final invoice submitted by the appellant the Fecontent was found to be 55.27% and the unit rate USD 77.08 PMT; • The Bank Realization Certificate was also per the final invoice; • The Fe content as per the Customs Laboratory Report was found to be 56.4%; • Assessment of the shipping bill was finalized @ USD 86 per unit on the basis of contemporaneous export; (v) Appeal No C/20820/2014 • The appellant filed a Shipping Bill for export of iron ore fines declaring it to be 53% Fe content and unit rate of USD 70 PDMT; • The Shipping Bill filed by the appellant was assessed provisionally subject to the outcome of the final test report; • The Bank Realization Certificate was also per the final invoice; • The Fe content as per the customs Laboratory report was found to be 52%; • Declared unit price accepted after....
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....t is to say the price actually paid or payable for the goods when sold for export from India for the delivery at the time and place of exportation where the buyer and seller of the goods are not related and price is the sole consideration subject to such other conditions as may be specified in the rules made in this behalf " b) In the present case there is nothing on record that the value declared by the appellant in respect of the goods exported was not the actual price paid by the buyer and that the appellant had received consideration over and above the price declared in the final invoice and/or the proceeds shown in the Bank Realization Certificates (BRC). c) Further as per Rule 3 of Customs Valuation (determination of Value of Export goods) Rules, 2007 subject to the provisions of Rule 8 of the said rules the value shall be 'transaction value'. In other words, to reject the transaction value, the requirements of Rule 8 shall be satisfied. d) In the present case the assessing officer had no reason to doubt the truth or the accuracy of the value declared by the appellant. No query was posed by the assessing officer to the appellant in this rega....
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....owing the procedure laid down by the Bureau of Indian Standards for drawal of samples of Iron ore, fines and Iron ore pellets and sent for testing. (b) The declared value of the export goods, shall be scrutinized in relation to the provisional invoice, contract, weight, price, etc., by the proper officer in terms of the provisions of Section 14 and the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 and the Shipping Bill may be provisionally assessed. In case of the transaction being declared or found to be between related parties, procedures governing related party transactions shall be followed. (c) Upon receipt of the load port test report and discharge port test report the proper officer shall compare the two reports with the terms set out in the contract. Where variations in the two test reports are within tolerance limits provided in the contract and do not impinge upon the declared price, the proper officer may proceed to finalize the provisionally assessed shipping bill in terms of the provisions of Section 14 and the Customs Valuation (Determination of Value of Export Goods) Rules, 2007. (d) In cases where the load port tes....
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.... 52 6. 20821/2014 55 54.20 7. 20822/2014 54 53.10 (ii) In any case, even these very minor differences in Fe content, notwithstanding the Price Adjustment Clause in the contract referred to in the impugned orders, do not have the effect of impinging upon the declared price since the BRCs in all cases are as per the final invoices, which fact is not disputed by the department. (iii) This is the view of the Tribunal in the case of Commissioner of Cus (Exp) Goa vs V.G.M. Exports reported in 2013(291) ELT 572(Tri-Mum), the relevant portion of which is reproduced below: 3. The contention of the Revenue is that value has to be arrived at on the basis of load Port analysis and not the discharge Port analysis. The learned Dy. Commissioner (AR) appearing for the Revenue reiterates the grounds of appeal stated in the appeal memorandum. 4. The learned Counsel for the respondent submits that they have discharged the export duty liability on the basis of final invoice price, which is charged from the foreign buyer, which is the transaction value under Section 14 of the Customs Act, 1962 and, therefore, the demand is not sustainable. ....
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....e factor is important. If there is a long delay in testing the sample, due to evaporation of moisture, the test results would show increase in iron content, which will be unfavorable to the party. In these circumstances, we have to hold that the percentage declared by the appellant and confirmed at the destination port has to be taken as valid. Hence, we allow the appeal with consequential relief. (v) Similar view has been taken by Tribunal in Bagadiya Brothers Pvt. Ltd Vs C.C&CCE, Vizag where it has been held as follow: The appellants exported iron ore. At the time of export, they produced the analysis certificate indicating the percentage of Fe in the iron ore. It was 61.45%. In terms of the Notification No. 62/2007 dated 3-5-2007, the appellants were entitled for concessional rate of export duty. The goods were allowed to be exported provisionally. Samples of the iron ore were taken. Later, the Chemical Examiner's test result was received. In terms of the said test report, the Fe content in the iron ore was 62.6%. It was 0.6% more than the stipulated percentage of 62% for the concessional rate of duty. Consequently, revenue proceeded against the appellant a....