Full Judgment
2. The appellant had imported certain parts which were required for manufacturing Modems from M/s. Multi-Tech Computers Pvt. Ltd. which held 33% of the total equity on the terms of collaboration and approved by the Reserve Bank of India. The appellant contented that the supplier had added 10% on which the supplier purchased the goods in their own name. The original authority took the view that the importer has not been able to demonstrate the complete list of invoice of the goods procured from other sources. He ordered that the goods imported by the appellant shall be assessed after loading 5% to the declared import price. For coming to the above conclusion he has relied on 4 reasons which are referred as 'a' to 'd'. It is interesting to note that the very same reasons have been mentioned in the earlier order which was subject matter of the decision of the Tribunal dated 20.4.1993. In spite of specific direction that the basis on which the authority had taken a decision to load the declared import price by 5% has to be made available to the party, there is no reference to that aspect in the present order. Going by the established practice when the authority takes a decision to load the declared import price, it must be on the basis of available material. The authority cannot imagine a figure and make an addition to the declared import price. The Commissioner (Appeals) has also not bothered to look into the specific direction given by this Tribunal in its Order dated 20.4.1993. No attempt was made to examine whether 5%, which was directed to be loaded to the import price, was on the basis of any material whatsoever.
3. We find that the impugned orders are not maintainable under law and they are only to be set aside. We, therefore, set aside the impugned orders and allow the appeal.
4. In the light of the view which we have taken in this decision the transaction value is to be accepted in the absence of any other material and consequential relief should be granted accordingly.