TaxTMI 
TaxTMI 
2025 (11) TMI 1116
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....rom Oman India Fertiliser Company (OMIFCO) under Long Term Urea off Take Agreement (UOTA) between Government of India and OMIFCO. A show cause notice dated 07.05.2015 was issued to the appellant in relation to certain imports made by them demanding certain differential duty as also proposing for confiscation of goods and imposition of penalty under Section 112(a) and 114A of the Customs Act, 1962. On adjudication, vide Order-in-Original dated 29.02.2016, the Adjudicating Authority, has, interalia, confirmed the demand of differential duty and also confiscated the goods. However, no Redemption Fine was imposed. Further, penalty was also imposed under Section 114A only and not under 112(a) (impugned order). The appellants are in appeal before....
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.... to proceed with the project and assigned all of its rights and obligations in the original Joint Venture agreement to IFFCO and an amended Joint Venture agreement was signed between OOCL, CRICPO and IFFCO on 20.10.2000. Learned Advocate has pointed out that various proceedings were initiated by Customs Department/DRI challenging the transaction value of imported urea from OMIFCO and even the Department of Revenue, in view of the background to the price negotiation at the highest level, issued exemption notification mandating valuation of customs duty at a price agreed under UOTA only. Under similar circumstance of fact, the Co-ordinate Bench at Chennai vide Final order No. 41756/2020 in the case of KRIBHCO, the appeal of the Revenue was di....
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.... Take agreement and Ammonia- off - Take agreement both are long term international contract finalized between two sovereign countries. From the MOUs and agreements it is also clear that rates were finalized for 15 years. Further it is evident that GOI had agreed to purchase 100% of rated production on the basis of fixed Long Term Pricing (LTP) for 15 years. These facts would evidence that there was a long term agreement as regards production and sale of goods by OMIFCO and purchase of the same by GOI/ Appellants. Further LTP for 15 years has been worked out in such a manner that the LTP was substantially higher than the projected import prices (as per Chem- System) in the initial years of the projects. From the Para 7.2 and 7.3 of the recor....
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....uty. 5. Learned AR reiterates the findings of the Adjudicating Authority. 6. Heard both the sides and perused the records. Since the issue is common in both the appeals, therefore, we proposed to take up both the appeals together for disposal. 7. The short question for determination is whether the import made by the appellant from OMIFCO under UOTA are a transaction between related party and therefore the transaction value is required to be rejected and the value has to be re-determined or otherwise. We find that the same issue under the identical facts were before Co-ordinate Benches including this Bench, wherein, it has been held that price declared as per UOTA agreement dated 22.05.2002 has to be accepted as transaction value. W....