Rakesh Kumar ORDER
Archana Wadhwa, Member (J)
1. Both the appeals of the assessee and one appeal of the Revenue are being disposed of by a common order as the issue involved is identical, though the appeals emerges from two different orders of Commissioner (Appeals). Vide the said orders, the appellate authority has confirmed the enhancement of assessable value done in the bill of entry itself in Appeal No. C/632/2010 and vide separate order, he has upheld the order of the original adjudicating authority vide which, while enhancing the assessable value, redemption fine and penalty stands imposed which is impugned in Appeal No. C/633/2010. For the sake of brevity, we refer to the facts involved as available in Appeal No. C/633/2010.
2. After hearing both sides, we find that the appellant received an offer from M/s. Argain Company Ltd., Taiwan under the cover of their letter dated 25-5-2010, for the purchase of stock lot of LCD TVs. As the said offer is an important piece of evidence, we would like to reproduce the same:
"We are pleased to offer you a Stock Lot of LCD TV's of 3600 PCs of Samsung, Sony and Sanyo brand on as it is, where it is basis. As it is a stock lot the sizes will remain same but the models will be assorted.
The prices are very reasonable and very competitive as it is a stock lot. The supply can be from any part of the world and the prices are CIF any part in India. The first shipment can be made within 7-10 days of confirming the order.
The entire lot should be lifted by December, 2010. We hope you will be confirming the order soon as the offer is valid for 3 days only."
3. On receipt of said offer, the appellants vide their letter dated 27-5-2010, entered into correspondence with M/s. Argain Company Ltd., Taiwan. The said letter is being reproduced below:-
"Sub.: Reg. Stock Lot Offer of LCD TV's
Thanks a lot for the offer on the Stock Lot in your letter dated 25th May 2010. As you know the quantity of 3600 Pcs will be taking up a lot of investment from our end. The prices given by you are the prices for retail customers. We will be buying big quantity and investing a lot of money in this trade and we require wholesale prices from you. As the quantity is so big there should be a discount of atleast 20% for us. Please look at the offer again and offer us the best prices keeping in mind the quantity. We can confirm to pick up the entire lot if the prices are suitable. All other terms are acceptable to us.
Looking forward to getting a better quotation from your end. Kindly look into the offer and give us your best prices."
4. Communication between the appellant and the foreign supplier was further undertaken with the foreign supplier's letter dated 31-5-2010, agreeing to offer discounts of 15% on the prices mentioned earlier inasmuch as the importer was taking up the entire lot. It was also mentioned in the said letter that they are very best prices and are absolutely the least price and would be offered only if the offer is acceptable within 3 days from that date. The relevant part of the said letter is being reproduced as under:-
"All prices are in Singapore Dollars and are CIF any port in India. The first delivery will be within 7-10 days after confirming the order. The time period for picking up the entire lot is by December 2010.
(1) LCD TV's 32" Samsung/Sony/Sanyo-SS241.25/Set LCD TV's 40" Samsung/Sony/Sanyo-SS482.25/Set"
5. The appellant accordingly confirmed the said offer vide their letter dated 2-6-2010, as detailed b........