D.K. Jain, J. - (1.) The common issue that arises for consideration in these civil appeals under Section 130E(b) of the Customs Act, 1962 (for short "the Act") relates to the determination of transaction value of ships/vessel, imported by each of the respondents on "as-is/where is" basis, under Section 14 of the Act for the purpose of levy of customs duty under the Customs Tariff Act, 1975.
(2.) In all these appeals, the respondent-importers had imported ships for breaking purposes under respective Memorandums of Agreements (MOA) on a lump sum price. However, subsequently addendums were entered into between the sellers of the ship and the importers reducing the negotiated price on account of certain shortcomings and missing parts. The short controversy is whether or not the reduced price mentioned in the addendum has any bearing on the determination of the value of the ship for the afore-stated purpose.
(3.) To appreciate the rival stands, it would be expedient to state the facts in Civil Appeal No.147/2004 as illustrative, with brief reference to the material details in each of the other appeals, in the latter part of this order.;