2019 (5) TMI 394

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....ding of various imported grades/types of S.S. Scrap and Aluminium Scrap such as Twitch, Tense, Taint, Tabor, Troma, Tally & Zorba, Tough, etc. During the period May, June & July, 2018, the appellants filed various Bills of Entry for clearance of the imported goods. At the time of assessment of Bills of Entry, the value declared was rejected and value of imported goods was enhanced. The appellant cleared the goods but challenged the assessment orders before ld. Commissioner (Appeals), who also dismissed the appeals on the following grounds:- (a) The declared price was lower than LME price even after allowing discounts from Prime Metal. (b) On analysis of International price of constituent materials for the declared goods it reveals that....

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....Tri.-Ahmd.). He further submits that the value cannot be enhanced on the basis of LME price as clarified by the CBEC as per the letter No.F.No.387/W/9/2013-JC dated 25 June, 2013. Therefore, he prayed that impugned orders enhancing the transaction value are to be set aside. 4. On the other hand, ld. AR reiterated the findings of the impugned order and prayed that as per LME price the appellant has highly under-valued the imported goods. Therefore, value is rightly enhanced, after giving discounts and the prime quality of material to be recovered from the material imported by the appellants. 5. Heard the parties and considered the submissions. 6. On consideration of the submissions mentioned above, we find that in all the above cases, i....

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.... goods obviously provides the best guide for determination of value of the import of goods but in the absence of evidence of contemporaneous import, reference to foreign journal for finding out correct international price of imported goods may not be irrelevant." 5.5 In the instant case, the proposition in the show cause notice is that the value of the contemporaneous imports indicated a higher price. If that be so, that should have been the starting point for determination of value of the imported goods and not some other basis. Further even when we take the values of the contemporaneous imports, the lowest of such value has to be adopted as provided for in Rule 6 and not the highest. In the instant case no such thing has been done by t....

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....and 14(1A), the value of any goods chargeable to ad valorem duty is deemed to be the price as referred to in that provision. Section 14(1) is a deeming provision as it talks of 'deemed value' of such goods. Therefore, normally, the Assessing Officer is supposed to act on the basis of price which is actually paid and treat the same as assessable value/transaction value of the goods. This, ordinarily, is the course of action which needs to be followed by the Assessing Officer. This principle of arriving at transaction value to be the assessable value applies. That is also the effect of Rule 3(1) and Rule 4(1) of the Customs Valuation Rules, namely, the adjudicating authority is bound to accept price actually paid or payable for goods as the t....

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....D. Orgochem Ltd. reported in 2008 (226) ELT 9 (S.C.). * The case laws relied upon by the Department will not help our cause because these decisions were applicable in respect of prime metals only and not w.r.t. scrap except in the case of Varsha Plastics. In Varsha Plastic also, the Hon'ble Supreme Court held that the availability of evidence of contemporaneous import of the same goods obviously periods the best guide for determination of value of the import of goods. But in the absence of evidence of contemporaneous import, reference to foreign journals for finding out the correct international prices for the purpose of Section 14 of the Customs Act is not irrelevant. Since contemporaneous import prices were available in the present case....