2017 (3) TMI 650

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....ic tariff area. The transaction value as declared by the appellant was rejected by the Revenue on the ground that in case of Copper ingots the London Metal Exchange (LME) price is higher than what is declared by the appellant and in case of brass ingots, the price is less than the import value of brass scrap from which such ingots were manufactured. The original authority rejected the transaction value adopted by the appellant in terms of Rule 10A of Customs Valuation Rules, 1988 and re-fixed the value for excise duty based on calculation adopted from LME prices for copper ingots and tariff value for brass scrap. 2. The Ld. Counsel for the appellant submitted that the rejection of transaction value and the re-fixation of value are on the....

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....l authority recorded that in respect of copper ingots, the price declared by the appellant is much lower than the price of copper ingots mentioned in LME list. We find the price mentioned in LME list cannot be automatically compared to that of sale in domestic market. Further, it is also not recorded whether the copper ingot, price for which was listed in LME is comparable to the copper ingots manufactured and cleared by the appellant. Admittedly, the appellants are manufacturing copper ingots using scrap. There is no indication in the original order that such scrap based ingots are listed in LME and are compared for determining the price. Apparently, a comparison cannot be made between the ingots manufactured from ore and the ingots manufa....