2007 (4) TMI 78 - AT - Customs

Valuation (Custom) - Appellant imported gold bars from branch office overseas and gold plating chemicals exported to them and no payment involved and no duty implication and further there was no sale involved and it was approved by R.B.I. - Invoicing of gold as per standard LME

Summary

Issues:
1. Valuation of imported gold bars converted into gold plating chemicals by related parties.

Analysis:
The case involved the conversion of gold bars imported from a Branch Office in Dubai into gold plating chemicals by the respondents. The imported gold was cleared duty-free against an advance license, with the arrangement approved by the Reserve Bank of India. The Customs Valuation Rules were invoked due to the relationship between the importer and the supplier of the gold bars. However, it was found that no extra payment was made, no foreign remittance occurred for the gold import, and the invoicing was based on standard LME rates. The adjudication authority accepted the declared value of the gold bars, concluding that the relationship did not influence the value. The Revenue's appeal was dismissed by the Commissioner (Appeals) on the same grounds, leading to the current appeal.

During the proceedings, only the learned SDR for the Revenue appeared, with no representation from the respondents. The Tribunal noted that the supply of gold bars and export of gold plating chemicals had RBI approval, with no payment, duty implication, or sale involved. Consequently, the Tribunal found no grounds for the Revenue's appeal, agreeing with the Commissioner (Appeals) that no interference was warranted. The Tribunal upheld the Commissioner's order and rejected the Revenue's appeal, concluding the case without any further intervention.