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2014 (9) TMI 948 - CESTAT MUMBAIRejection of transaction value - Exclusion of over-riding commission - Held that:- The appellant has submitted the evidences of such transactions wherein, if the over riding commission is excluded, the realization by the foreign supplier in both the transactions remains more or less identical. These evidences submitted by the appellant have not been considered or rebutted by the department in any meaningful way. Thus, the appellant has demonstrated that the price which he has paid for the imports undertaken from the related foreign buyer remains uninfluenced by the relationship and is the transaction value for the purpose of Section 14 of the Customs Act. Rule 3(3)(b) of CVR 2007, also provides that suitable adjustments has to be made for the difference in transaction levels, quantity levels and relevant facts and the comparison made between the prices to a independent buyer and the prices to a related party where the related party acts as a dealer/distributor. This provision of law has been completely ignored by the lower authorities. - acting as indenting agent and earning commission from foreign suppliers for their sales to third parties are entitled to a lower price for supply and merely because a lower price is charged, it cannot be held that the transaction value can be rejected unless there is evidence of additional consideration of flow back to the foreign supplier. - impugned order is clearly unsustainable in law and the value declared by the appellant has to be accepted as transaction value for the purpose of imports - Decided in favour of assessee.
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