TaxTMI 
TaxTMI 
2003 (6) TMI 49
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.... was noticed by the buyer which led them to renegotiate the price. The details of the defects and short comings, the date of having them noticed and the reduction in price are summarised in the annexure to this order. 3.The bills of entry which were filed for clearance of the goods has indicated as the basis for valuation the reduced price. These reduced prices were not accepted by the department on the view expressed in the orders of the adjudicating authority that the reduction in the prices after the goods arrived in India cannot be accepted. The provisional assessments, under which the goods were cleared on arrival were finalised by not giving accord to the reduction in prices. 4.Each of the importer appealed the orders to the Commiss....
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....l. Its type, gross tonnage, light displacement tonnage, details of the engine, propeller and generator which is described as 3 x Daihatsu (6PST-26B) ABT 450 KW. 7.The addendum to the memorandum of agreement, substitutes for the description of the generator "3 x Daihatsu (6PST-26B) ABT 450 KVA." 8.The value referred to in Rule 4 of the Customs Valuation Rules, 1988 is the value for sale of goods that are imported into India. In terms of the said rule, it is the transaction price paid for the goods. It can hardly be disputed that, for that price to apply, it must be the price for the goods which the buyer and the seller had contracted to buy and sell respectively. If the goods which are actually imported in pursuance of an agreement are dif....
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....f the generator is one of the exceptions. The contention by the departmental representative that the ship is intended to be broken up and therefore the capacity of the generator or other factors of the goods is irrelevant, is not acceptable. No doubt, much of the ship, and other metal parts will be reduced as scrap by its buyer and sold as scrap but this does not mean that such a buyer cannot salvage from the ship some removable parts and sell them. There is nothing in law against this practice and it is well known that this is what actually happens. Parts such as fitments, furniture, engine parts, etc. are dismantled and sold as such. It is only after serviceable parts are removed, whatever is left over is then broken up into scrap. 10.Th....