TaxTMI 
TaxTMI 
TaxTMI 
2005 (2) TMI 115
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....ee was not originally owner of the rig and in order to comply with the terms of the contract, purchased in March 1999 the rig Pride Pennsylvania from Pride Global Limited, a company registered in the British Virgina Islands at a price of US $ 17 millions. The rig was being deployed for off sea exploration in accordance with the directions of the hirer, i.e. ONGC, and did not initially enter either Indian territorial waters or any areas of the exclusive economic zone designated under the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976 to which the provisions of the Customs Act, 1962 (hereinafter referred to as 'the Act') have been made applicable. In April 2000, the rig was required by the hirer to enter one of such designated areas. On the belief that such entry would constitute import under the Act, assessee filed a Bill of Entry in May 2000 for the rig, declaring the C.I.F. value of the rig to be Rs. 783,439,838/-. The Bill of Entry was accompanied by an invoice showing details of the value of fixed and loose equipment, spares and consumables on the rig for a total C.I.F. value of U.S. $ 17,682,690/-. The invoice was issued by the....
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....in January of the year with ONGC. He declined to accept the declared value on the ground that the buyer, Pride Foramer and seller, Pride Global Ltd. were related parties, each of them being a subsidiary company of Pride International Inc. He noted that the rig was purchased in 1997 by Pride International Inc from Cartier Shipping Co. at US $ 35.35 millions. He did not accept the report by Bureau Veritas issued in March 2000 valuing the rig at US $ 17 millions on the ground that it has been arrived at without taking into account the fact of the earlier sale at US $ 35.35 millions. He valued the rig by applying the rates of depreciation specified in the Circular F. 4951/16/93-Cus. V of 26-5-1993 of the Board at US $ 35.35 millions, taking into account additional amounts which were subsequently spent on the rig. Accordingly, he arrived at the assessable value of Rs. 145,18,93,375/- and confirmed the demand for differential duty which was worked out at Rs. 29.45 crores. The Commissioner held the importer-assessee guilty of suppression of facts and misdeclaration of values. Bureau Veritas and Jean Paul Rabier were guilty of aiding and abetting assessee-importer. Accordingly, Commissione....
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....hod of assessment value of the rig has to be determined. After referring to various rules the Tribunal referred to data indicated in reputed publications indicating periodical change of value of rigs. After noticing various details the Tribunal came to the conclusion that there were noticeable fluctuations in prices and there were sometime violent fluctuations. With reference to day-rates, it came to hold that there was a relationship between day-rates and the price of oi1 rigs. Particular reference was made to two publications i.e. the Bassoe Offshore Monthly, published by Bassoe Offshore Consultants, Edinburg, Scotland and Offshore Drilling Monthly published by Jeferies and Company Inc. with offices Worldwide. The Bassoe Offshore Monthly of March 1999 had published a table of changing values of rigs, which was referred to by the Tribunal. It was noted that the relevant data were produced before the Commissioner, but he did not accept them, by introducing the concept of "value in exchange" and "value in use". It was noted that the two aspects were difficult to understand and the Commissioner or the departmental representative did not cast any doubt on the accuracy or reliability o....
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....rned counsel for the assessee-respondent submitted that right from the show-cause notice stage stand of the Department was that the price indicated was the transaction value which was not to be accepted because the transactions were related. The assessee could not have benefited by showing a lesser figure when the customs duty was payable by ONGC. It was not the case of Revenue that ONGC and the assessee colluded to show a lesser figure. As a matter of fact, the various circumstances like the insurance coverage, agreement of ONGC to pay the duty as assessed by the authorities clearly rule out any collusion. Admittedly, this was not treated as a case of under-valuation. There were several bids invited by ONGC and finally on negotiations the rates were fixed. The view taken by the Tribunal has been arrived at after taking into consideration all relevant aspects, keeping in view the correct position in law. That being so, there is no scope for interference in these appeals. 13.Though there is amount of controversy as to whether the Department accepted the declared price as the transaction value, and fixed the higher price because of relationship, it is not necessary to go into that a....
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....n the absence of any of the special circumstances indicated in Section 14(1) and particularised in Rule 4(2). 18.Rule 4(1) speaks of the transaction value. Utilisation of the definite article indicates that what should be accepted as the value for the purpose of assessment to customs duty is the price actually paid for the particular transaction, unless of course the price is unacceptable for the reasons set out in Rule 4(2). "Payable" in the context of the language of Rule 4(1) must, therefore, be read as referring to "the particular transaction" and payability in respect of the transaction envisages a situation where payment of price may be deferred. 19.That Rule 4 is limited to the transaction in question is also supported by the provisions of the other rules each of which provide for alternate modes of valuation and allow evidence of value of goods other than those under assessment to be the basis of the assessable value. Thus, Rule 5 allows for the transaction value to be determined on the basis of identical goods imported into India at the same time; Rule 6 allows for the transaction value to be determined on the value of similar goods imported into India at the same time a....
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.... particular goods in this case are wool wastes, should be so considered or not is primarily and essentially a question of fact. The decision of such a question of fact must be arrived at without ignoring the material and relevant facts and bearing in mind the correct legal principles. Judged by these yardsticks the finding of the Tribunal in this case is unassailable. We are, however, of the view that if a fact finding authority comes to a conclusion within the above parameters honestly and bona fide, the fact that another authority be it the Supreme Court or the High Court may have a different perspective of that question, in our opinion, is no ground to interfere with that finding in an appeal from such a finding. In the new scheme of things, the Tribunals have been entrusted with the authority and the jurisdiction to decide the questions involving determination of the rate of duty of excise or to the value of goods for purposes of assessment. An appeal has been provided to this Court to oversee that the subordinate tribunals act within the law. Merely because another view might be possible by a competent court of law is no ground for interference under Section 130-E of the Act t....