F.S. Gill, President

1. Originally preferred as a revision application to the Central Government, the matter has been transferred to us as an appeal and is being disposed of as such. The present appeal is directed against the Order-in-Appeal dated 28-4-1977 passed by the Appellate Collector of Customs, Bombay.

2. For a proper appreciation of the issues involved in the present appeal, it would be useful to briefly narrate the facts of the case. A contract was entered into between The Minerals Metals Trading Corporation of India (MMTC), hereinafter called the Buyer, and M/s. Empresa Minera Del Peru (M1NERO-PERU), hereinafter called the Seller, and this contract is dated 6-3-1972. As per the terms of the contract, the seller was to supply to MMTC Electrolytic Copper Wire Bars corresponding to ASTM B5/43 specifications. The price clause is also relevant and is reproduced below : -

"The monthly average shall be taken as the price basis.

The purchase price for each shipment is therefore to be understood as the monthly average of the Peruvian Producers Price for the month prior to the contracted month of shipment."

3. The present dispute relates to a consignment of 999.923 M