- (1.) The present appeal has been filed by the Revenue under Section 130A of the Customs Act, 1962 (the Act) against the final order being Order No.A-704/Kol/2001 dated 09th August 2001 in Appeal No.C/V-296/2001 passed by the Customs, Excise & Gold (Control) Appellate Tribunal, Eastern Bench, Kolkata, (for short the Tribunal ) whereby the Tribunal allowed the appeal of the respondent-assessee.
(2.) M/s. Initiating Explosives Systems India Ltd., the respondent herein, had been importing "Orange Shock Tube" from M/s. The Ensign Bickform Co., 660, Hopmeadow Street, USA (hereinafter referred to as, the exporter ) at a unit price of US$ 15.00/1000 ft. (0.015/ft.) which was the declared value of the tubes till November 2000. In November 2000, the price was reduced to US$ 0.0141/ft. (14.10/1000 ft.). The said reduction in the price was attributed to the increase in the import by the importer. The Department accepted the said reasoning.
(3.) However, in June 2001, the importer declared the value of the imported tubes at a unit price of US$ 0.01/ft. (i.e. US$ 10.00/1000 ft.) and submitted Invoice No.259217-4 dt. 05.02.2001. The total quantity imported vide Bill of Entry was 78 lacs feet indicating the value at Indian Rs.6.30 crores and US$ 13,25,660 ft. As per Export Import Policy, this item is restricted one and import is allowed only against specific licence.;