TaxTMI 
TaxTMI 
2023 (4) TMI 669
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....ant had filed two bills of entry at Customs House, Navlakhi for imported Steam (Non-coking) Coal in bulk from M/s Visa Comtrade AG, Swtizerland in terms of purchase order dtd. 22.08.2008. The purchase order inter alia, contained clause 2.1 specifying the specification of the Coal to be supplied, clause -5 specifying weighing, sampling and moisture determination, clause -6 relating to price adjustment for quality and rejection. The Bills of entry were assessed provisionally for want of original documents and test results and allowed clearance on payment of duty assessed on the value declared in terms of the Purchase Order. Thereafter on 10.01.2009, the appellant represented before the lower authority that the coal supplied by the exporter wa....
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.... 22.08.2008 and the invoice and the goods actually imported are not the goods having the specified quality standard as mentioned in the Purchase Agreement dtd. 22.08.2008. As such, the goods actually imported are different goods for which the price actually payable has been decided as USD 86 PMT in the meeting dated 07.01.2009 referred to have and was to be paid accordingly. Moreover , such price cannot be said to be re-negotiated price of the same goods because the original price of USD 154.34 PMT was for goods having the specified quality standards as mentioned in the Purchase Agreement dtd. 22.08.2008 and the invoice which are different from the goods actually imported. Therefore, the price of USD 86 PMT is the transaction value of goods....
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....ement dtd. 22.08.2008 and, therefore, of no sanctity on law. The Ld. Commissioner nowhere disputed the fact that the coal supplied was not of the specified ISO quality standards and was different form the coal intended to be purchased i.e. it has been agreed that the goods actually imported were different from the goods intended for. He has also not disputed the fact of price reduction on account of such difference in the goods actually imported from the goods intended for. However, holding so, he considered the original price of USD 154. 34 PMT as specified in the Purchase agreement dtd. 22.08.2008 for valuation and assessment of the customs duty payable for coal actually imported which was different from the coal intended for. In a way, t....
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....ides. Having regard to the afore-stated fact, the controversy at hand narrows down to the question whether the final assessment of imported Coal should have been done as per the reduced price US$ 86 PMT re-negotiated by the parties to the contract after completion of imports in question. We are of the opinion that in light of the statutory provisions, the factum of actual payment of the price in terms of the contract/ agreement cannot be ignored while determining the value of the goods under Section 14 of the Act. Further the fact are not disputed in this matter that in respect of the quality of coal consignment actually arrived in India was different. In support of this, appellant also produced the analysis report. We also observed that di....
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....to its amendment with effect from 10th October 2007, shall be deemed to be the price at which such or like goods are ordinarily sold, or offered for sale, for delivery at the time and place of importation - in the course of international trade. The word "ordinarily" is clarified in the Section itself, which describes an "ordinary" sale as one "where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale...". According to Section 14(1A) price of imported goods is to be determined in accordance with the Rules framed in this behalf. Under Rule 3(i) of the 1988 Rules, the value of the imported goods shall be the "transaction value". Transaction value has been defined in Rule ....