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2021 (11) TMI 492 - CESTAT AHMEDABADValuation of imported goods - Related person - stocklot of coated/uncoated papers inrolls seized from NPT, godown Alipur, Delhi - rejection of declared value - declaration of lower value - differential duty demand on the basis of Rule 9, of CVR 2007 - HELD THAT:- Neither the Show Cause Notice nor the Order-in-Original rely upon any provision of law under which the documents procured from Belgium Customs have been relied upon against the three importers but the only section under which such documents can be relied upon is Section 139(ii) of the Customs Act,1962. The relied upon documents do not meet the test of Section 139(ii) of the Customs Act, 1962 and hence are not admissible in evidence. Since these documents are neither signed nor authenticated and also full of numerous discrepancies as explained above, no presumption can be raised about its truthfulness - No explanation has been given by the DRI as to if the purported export declaration of higher value was available why corresponding invoices were not provided by the Belgium Customs as export declaration is always prepared on the basis of an invoice. Further, the duty of ₹ 74,640 has been confirmed on the ground that there was a difference in weight to the extent of 8.552 MT in respect of two Bills of Entry both dated 12.9.2014 as the procured invoices showed the actual quantity 447.492 MT where the actual invoices showed the total quantity imported as 438.940 MT. On the issue of inter-relationship between the three importers and the fact that all the three have been treated as related persons on twin grounds. In the first place it has been observed by the Principal Commissioner that Shri Prakash Chand Garg was Director of M/s NPT whereas his sons Shri Vijay Garg and Shri Ashish Garg were Directors of M/s SPPL and M/s SIPPL. He further observed that all three are part of same family and reside at the same residential address. He noted that there had been fund transfers among the three importers during period the financial year 2017-18 and these fund transfers were duly reflected in their financial statements - It has been held that Shri Prakash Chand Garg was one of the Directors in M/s Affluent Enterprises Ltd, Hong Kong and by virtue of that position all the three importers are related persons of M/s Affluent Enterprises Ltd. Further, M/s The Crown Commercial House, Hong Kong which was one of the suppliers to these importers was owned by one Shri Vikash Khatuwala who had a major shareholding in M/s Affluent Enterprises Ltd. Hence by virtue of that position, M/s The Crown Commercial House, Hong Kong was also a related person of these three importers. Merely because there were transfer of funds in India amongst three importers will not make them related persons in terms of Rule 2(2) of CVR,2007. The concept of related person under the Customs Act, 1962 is applicable only with regard to imported goods. The transfer of funds from one entity to another entity in India cannot have any bearing on the concept of related person with regard to the provisions of the Customs Act and Valuation Rules made there under - all the three importers cannot be treated as related persons. In the present case there was no need to redetermine the value as the transaction value under Rule 3(1) was available in view of our detailed findings hereinabove. Though Rule 3(1) is subject to Rule 12 but we find Rule 12 is not applicable to the facts of the present case as there is no credible evidence brought on record to reject the transaction value. We have already held that the documents procured from the Belgium Customs are not admissible in evidence. In this view of the matter, we hold that the transaction value declared by all the three importers were in accordance with Section 14(1) of Customs Act,1962 read with Rule 3(1) of CVR,2007. Further it was for the Principal Commissioner to have rebutted or displaced the detailed evidence which has been discussed by us in the preceding paragraphs which he has chosen to totally overlook and sidetrack. The differential duty demand on all three importers, imposition of penalties on all parties and Redemption Fine on M/s NPT are set aside - Appeal allowed - decided in favor of appellant.
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