High seas sale dispute


Dear All,

There was a High Seas Sale purchase of 3000 MTS coal from a seller in which the two Invoices were raised, one for basic price of coal and other for handling charges both valued 16871394/-. Customs duty for the subject consignement which is approximately 15 Lakhs was paid by us. Although HSS agreement was in favour of the seller the quality of the cargo arrived was very poor such that we were unable to lift the cargo the entire cargo.

After almost 5 months from the date of purchase we have just paid 2296332/- and lifted 407 MTS and hence the seller asked us to reinvoice the cargo and hence we raised a VAT sales invoice for 2593 MTS valued 16774247/-. Please note that we have raised the Invoice exactly at our purchase price(including customs duty) with no additional margins.

In this scenario there was a ledger balance of around 24 Lakhs which was due to us by the particular company in this transaction after raising our VAT Invoice. Exactly after we raised the Invoice we started asking them for our payment due for which they asked us the VAT return copy filed and we provided it to them. They took input credit of the subject Invoice. Suddenly after 3 months they come up with a issue stating that they have incurred around 30 Lakhs loss in the particular quantity which they took back from us i.e they mean to say that they have sold it at a lesser price in the market and hence they raise a debit note for 30 lakhs and in turn after deducting the 24 Lakh due to us they insist us to pay 6 lakhs.

This doesnt seems to be a fair practise since they did not inform me about this when they asked me to reinvoice the quantity and hence in this regard we have no option rather than to collect the due of 24 Lakhs by moving legally.

Now my question is how to take forward this issue, meaning under what category(either civil or criminal) and does the HSS agreement come in to play in this issue and how strong i am legally in this issue.

Awaiting ur earnest reply on the same.

 

 
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