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J.K. Chemicals Ltd. Vs. Collector of Customs - Court Judgment

LegalCrystal Citation
CourtCustoms Excise and Service Tax Appellate Tribunal CESTAT Delhi
Decided On
Judge
Reported in(1990)(31)LC723Tri(Delhi)
AppellantJ.K. Chemicals Ltd.
RespondentCollector of Customs
Excerpt:
.....with reference to a long term contract details of which are not available with them. the learned appellate collector directed the appellants to produce documentary evidence such as l.m.e. (london metal exchange) quotations prevalent at the time of shipment. in spite of a reminder the appellants failed to produce the requisite documentary evidence. in the absence of the evidence the appellate collector upheld the assistant collector's order and dismissed the appeal.3. aggrieved from the appellate collector's order, the appellants preferred a revision application to the central government, which on transfer to the tribunal is being treated as an appeal and is being disposed of as such.3. aggrieved from the appellate collector's order, the appellants preferred a revision application to.....
Judgment:
1. This appeal is directed against the order of the Collector of Customs (Appeals) Bombay, dated 16th January, 1978 whereby he had upheld the order of the Assistant Collector.

2. The appellants imported a consignment of high grade electrolytic zinc slabs under bill of entry dated 9.2.1977 and declared its price as $735 per Metric Tonne. They stated that this value had been arrived at with reference to contract with foreign supplier entered on 18.12.1976.

The lower authorities, however did not accept this invoice price on the ground that M.M.T.C. had imported identical goods by the same vessel wherein the price of the goods was declared as $795 per Metric Tonne.

The appellants contested before the lower authorities that in their case they had effected the import with reference to co-lateral agreement, whereas the importation effected by M.M.T.C. was with reference to a long term contract details of which are not available with them. The learned Appellate Collector directed the appellants to produce documentary evidence such as L.M.E. (London Metal Exchange) quotations prevalent at the time of shipment. In spite of a reminder the appellants failed to produce the requisite documentary evidence. In the absence of the evidence the Appellate Collector upheld the Assistant Collector's order and dismissed the appeal.

3. Aggrieved from the Appellate Collector's order, the appellants preferred a revision application to the Central Government, which on transfer to the Tribunal is being treated as an appeal and is being disposed of as such.

3. Aggrieved from the Appellate Collector's order, the appellants preferred a revision application to the Central Government, which on transfer to the Tribunal is being treated as an appeal and is being disposed of as such.

4. Shri Deshpande, the learned Counsel for the appellants has submitted that the subsequent consignment of identical goods imported by his clients under the same contract has been allowed to be cleared by the customs authorities accepting the invoice value of $735 per Metric Tonne. He has, however, not been able to show us a copy of the contract entered into between the appellants and their foreign supplier. The Appellate Collector had taken two contradictory decisions for the obvious reason that the documents sought from the appellants were not filed. He was obliged to decide the matter without requisite documents.

Rightly so, as it was an unsubstantiated claim.

5. We feel that ends of justice demand that further opportunity be afforded to the appellants to produce the documents sought from them by the Appellate Collector and then the matter be decided in the light of the additional evidence.

6. For the above reasons, we allow this appeal, set aside the order of the Appellate Collector and remand the case for re-decision after affording an opportunity to the appellants to produce further documentary evidence.


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