TaxTMI 
TaxTMI 
2003 (11) TMI 144
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....M/s. Kabul Gulf Trading LLC Dubai, UAE. 2.1 In respect of Bill of Entry No. 103522, dated 9-4-96 the Customs authorities stumbled upon a Letter of Credit (L/C) established by the said trading company in favour of M/s. China Plastic Company, Taiwan, for US $ 55,570 as against the price of US $ 29,924.10 reflected in the invoice presented by the appellant along with the corresponding Bill of Entry. 2.2 In respect of B/E 110097, dated 22-10-96, as against the declared value of US $ 27,822.05, the authorities noticed that the said goods were insured by the supplier for US $ 56,589.01. Similar evidence of insurance value of US $ 52,982.18 against the declared value of US $ 24,219.25 was noticed. 2.3 It has also been alleged that t....
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....o recovery of L/C. The show cause notice proposed to enhance the value for the said 8 B/Es based on the actual value derived from the recovered L/C for the first B/E. In short basis for value enhancement was two-fold :- (i) Based on the value noted in the recovered L/C (For 8 B/Es). (ii) Based on the amount at which the supplier had insured the goods (For 2 B/Es). 3.1 The appellants made several submissions to refute the allegations and also produced the evidence of contemporary import from the same ICD, showing imports at prices comparable with the price declared by the appellants. But these grounds were not considered and the impugned order ....
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....on this aspect. There is no finding in the order to claim that the amount reflected in the L/C was ultimately paid to the supplier in connection with the said supplies or whether a part of it was adjusted against subsequent supplies. The adjudication order proceeds to accept the price mentioned in the L/C as the correct price in respect of goods covered by 8 B/Es. In the face of the contemporary correspondence between the appellants and the suppliers, whereby ongoing negotiation of price between buyer and seller is established and the genuineness of this correspondence has not even been doubted, the adoption of price as shown in the L/C is totally without the authority of law. It is more so for the reason that, the department in the impugne....