Nature of Supply and Terms Contract are different from BGH Exim Limited: CESTAT upholds value declared on Import of Non-Calcined Petroleum Coke [Read Order]

The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) upheld the value declared on import of non-calcined petroleum coke as the nature of supply and terms contract are different from BGH Exim Limited.

The appellant in the present matter is CC Jamnagar and the respondent is Shree Cement Limited.

The issue involved in the present case is that whether the value declared by the appellant in respect of import of non-calcined petroleum coke as Rs. 2871.15 is correct or price of comparable import made by BGH Exim Limited @ Indian Rs. 3701.20 is correct. Accordingly, whether the enhancement of value should be made taking the price of comparable imports.

the case of the department is that due to similarity in various factors, the import price of BGH Exim Limited needs to be followed and the price declared by the appellant should be rejected.

The Authorized Representative for the Revenue submitted that learned Commissioner (Appeals) has not considered the fact that all the main factors i.e. Origin of Cargo, date of shipment / bill of lading, vessel carrying the cargo remain the same.

The Counsel further submitted that the cargo in the case of Shree Cement (the Respondent) and M/s BGH Exim Limited is identical because there is no change in analysis result. Therefore, the order in appeal passed on the basis of incorrect appreciation of facts, suffers from factual infirmity. Hence, the same deserves to be quashed and set aside.

The advocate appearing on behalf of the respondent submitted that the impugned order was passed on appreciation of factual as well as legal aspect, proper reasoning was given by the Commissioner (Appeals) inasmuch as it was contended that Import of the appellant can be differentiated from the import made by BGH Exim Limited.

The Coram consisting of Ramesh Nair, Judicial Member and Raju, Technical Member observed that “The Commissioner (Appeals) has examined each and every aspect of the case and came to the conclusion that there is a vast difference between the nature of supplies made by BGH Exim Limited and the appellant in as much as there is a long term contract of the appellant with the suppliers and for the huge quantity of 9000 MT Per Annum.”

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to TaxscanAdFree. Follow us on Telegram for quick updates.