TaxTMI 
TaxTMI 
2026 (8) TMI 1084
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....lant against the Assessment order passed by the Assistant Commissioner of Customs, Krishnapatnam Port has been rejected. 2. The brief facts of the case are that the appellant exported two consignments of iron ore fines to M/s Devi Resources Ltd., Hong Kong under shipping bill Nos. 898/11-12 and 974/11-12 dated 16.08.2011 and 20.08.2011 respectively from Krishnapatnam Port. The exports were made pursuant to Contract No.DRL/KSL/101/S-2011, dated 29.07.2011. The Shipping Bills were provisionally assessed under Section 18 of the Customs Act, 1962. 3. Against the quantity of 28,000 MT declared in the shipping bills, the appellant actually exported 26,400 MT of iron ore fines. The contract provided for adjustment of the base price depending....
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....nd the amount actually realized from the buyer. It is submitted that the Department has not alleged that the appellant received any amount over and above the value reflected in the final invoice and Bank Realization Certificate. 5. Learned Counsel further submits that in terms of Rule 3 of the Customs valuation (Determination of Value of Export Goods) Rules, 2007, the transaction value is the primary basis for determination of export value. Unless the declared transaction value is rejected in accordance with law, recourse cannot straightaway be taken to another national value. Reliance has been placed upon Commissioner of Customs (Export), Goa Vs V.G.M. Exports, 2013 (291) E.L.T. 572 (Tri.-Mumbai), Essel Mining and Industries Ltd., Vs Co....
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....re is no allegation or evidence that the appellant received any amount in excess of what was reflected in the final commercial invoice or Bank Realization Certificate. 10. The issue is substantially covered by the decision in the V.G.M Exports, supra. In that case also, iron ore was exported under provisional assessment and the dispute related to valuation based upon quality parameters. The Mumbai Tribunal held, in substance, that where the buyer and seller were unrelated and there was no evidence of realization of any amount beyond final invoice value, the amount actually realized as evidenced by the final invoice and bank certificate constituted the transaction value on which export duty had to be discharged. The ratio of V.G.M Exports....
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....ced V.G.M Exports, supra, while considering the acceptability of the final invoice/BRC value. In the case of Essel Mining and Industries Ltd., supra, the Tribunal Kolkata held in the context of export of iron ore that export duty should conform to the final invoice where the contractual price was dependent upon Fe content as finally Department in accordance with the contract. 12. We further find merit in the appellant's contention regarding the finalization of assessment. If the Department intended to reject the declared transaction value and adopt a different value having adverse civil consequences, the basis for doing so ought to have been disclosed to the appellant and a reasonable opportunity afforded to meet the material relied upon....