Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Customs Act Transaction value of goods |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Customs Act, 1962-Customs Valuation Determination of Price of Imported Goods Rules, 1988 : Rule 4-Transaction value of goods under~Determination of-Import of oil rigs-Price declared, for payment of duty-Non-acceptance of price paid by importer as value under - declared-Levy of duty and penalty-Tribunal on basis of various materials held variation in price of rigs due to fluctuations in prices as such declared price to be transaction value in terms of Rule 4 and set aside duty and penalty levied-On appeal, held: Material referred by Tribunal relevant-Authenticity, credibility or reliability of documents not questioned-Hence, order of Tribunal not perverse or irrational and calls for no interference-Constitution of India~Article 136. Rule 4-Transaction value of goods under-Determination of-Held: It is the price actually paid for the particular transaction unless price is unacceptable under Rule 4(2)-Use of definite article 'the' indicates value accepted for assessment to custom duty-'Payable' in context of Rule 4(1) is to be read as referring to 'the particular transaction' and payability in respect of the transaction envisages a situation where payment of price may be deferred-Rules 5 to 8 provide for alternate modes of valuation, when transaction value under Rule 4 is rejected-Rules 5 to 8 and 3-Interpretation of Statutes. Practice and Procedure : Tribunal recorded agreement between parties on a point-Plea before Supreme Court by one of the parties taking different stand-Held: If there was wrong recording by Tribunal, aggrieved party should approach the Tribunal and not the Supreme Court. Words and Phrases: Payable '-Meaning of in the context of Rule 4(1) of the Customs Valuation Determination of Price of lmported Good Rules 1988. Respondent no. 2 in Civil Appeal; Nos. 808-810 of 2004 and sole respondent in Civil Appeal No. 811 of 2004-assessee imported rig from a foreign company to bring it to India for fulfilment of the contract with ONGC. It declared the value of the rig for clearance on payment of duty. Manager of assessee's company and respondent No. 1 in C.A. Nos. 808- 810 of 2004-a marine inspecting agency certified the value of rig as the price paid by assessee-importer to the foreign company, the seller. Revenue found that the value of price was under declared and issued show cause notice to the assessee. Ultimately Revenue found that the transaction value of the rigs in terms of Rules 4 of the Customs Valuation Determination of Price of Imported Goods Rules, 1988 was the price paid for its purchase but did not accept the declared value on the ground that the buyer-assessee and the seller-foreign company were related parties both being subsidiary of the same company and the seller had purchased the oil rig in its previous sale at a price which was twice the price paid by assessee-importer and levied penalty and interest. Appeals were filed. Tribunal recorded that both the assessee and Revenue agreed that the declared price is the transaction value and relying on data of various publications and journals and the report of the valuation expert, held that there were fluctuations in prices of rig and as such the declared price would be the transactional value in terms of Rule 4. It allowed the appeal and set aside the duty and penalty levied. Hence the present appeal. Appellant-Revenue contended that the Tribunal merely relying on the data available and the report of the valuation expert, could not have held that the value disclosed was the market value; that Rule 4 has application only when the transaction leads to import; and that the Tribunal proceeded on the basis as if the Revenue accepted that the price disclosed was the transaction value. Respondent-assessee contended that the Tribunal arrived at the view after taking into consideration all relevant aspects and the correct position in law; and that right from the stage of show cause notice Revenue's stand was that the price indicated was the transaction value. |
Judge | Hon'ble Dr. Justice Arijit Pasayat |
Neutral Citation | 2005 INSC 76 |
Petitioner | Commissioner Of Customs, Mumbai |
Respondent | M/s. Bureau Veritas And Ors. |
SCR | [2005] 2 S.C.R. 118 |
Judgement Date | 2005-02-14 |
Case Number | 808-811 |
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