2025 (2) TMI 1285

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....iled a Bill of Entry No. 212601 dated 29.11.2007 for import of 'One Unit Clay Processing Machine from M/s. Manfredini and Schianchi SRL, Italy declaring its value as Euro 326754 CIF which worked out to Rs. 1,88,11,228/-. On scrutiny of the proforma invoice, order confirmation etc. it came to the knowledge of the Department that the cost of the composite machine system was Euro 605,325.00 FOB, whereas in the final agreement, the amount was shown as Euro 326754 FOB after allowing a discount of Euro 278,571 which works out to 46.02%. Consequently, letter was issued to the appellant to explain the exorbitant discount allowed by the overseas supplier. After receiving the reply, the adjudicating authority being not satisfied with the same confirm....

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....pany i.e. M/s. Manfredini and Schianchi SRL, Italy qualified the technical bid and on opening their financial bid it was quoted as Rs. 3,16,79,048/- FOB. Later another meeting was held with Shri Nischal Vora, representative of M/s. Manfredini and Schianchi SRL, Italy for price negotiation at Abad Airport Hotel, Nedumbassery on 04.04.2007, whereby, the revised financial bid was quoted for Rs. 288.60 lakhs. Consequently, a purchase order was issued by the appellant on 02.05.2007 to M/s. Manfredini and Schianchi SRL, Italy quoting the accepted price for Plant and Machinery as Rs. 2,88,60,000/- which later was confirmed by the appellant company on 16.07.2007. He has submitted that after extensive negotiation and keeping in view the project cost....

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....financial assistance allowed by the Central Government of the project cost and the total limit of 288.60 lakhs fixed in the tender quoted by them for purchase of the said imported plant and machinery. We find from the tender document, and the subsequent negotiations by the representative of overseas buyer M/s. Manfredini and Schianchi SRL, Italy who agreed to revise the same to Rs. 288.60 lakhs and consequently a purchase order for that price has been issued. The minutes of the meeting recorded on 04.04.2007 extracted below: "Minutes of the Meeting of S.P.V with Sri. Nischal Vora, Representative of M/s Manfredini & Schianchi regarding price negotiation held at Abad Airport Hotel, Nedumbassery on 04.04.2007 at 12.30 pm Present ....

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.... indefinite delay in the procurement of the machineries. After detailed discussion Sri Nischal Vora, Representative of M/s Manfredini and Schianchi finally agreed to revise the financial bid as Rs. 288.60 lakhs. The technical bid will remain as it is. The meeting agreed the following matters also. 1. The revised financial bid for Rs. 288.60 lakhs will be send from M/s Manfredini & Schianchi at an early date. 2. The performance security to the terms of Bank Guarantee will be furnished by M/s Manfredini & Schianchi. The S.P.V demanded 20% of the bid amount as security. The representative suggested 10% of the cost. The matter will be brought up to M/s. Manfredini & Schianchi by the representative and intimat....