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2013 (6) TMI 535 - AT - CustomsValuation - Extra discount received - appellant are related person to their foreign supplier - Held that:- As per the discount policy of their foreign supplier, as the product being new in India, they offered extra 10% discount to the appellants to introduce the product in India and it is an accepted practice that the goods are sold in different places and at different prices and to attract customers, additional discounts may be given in an area where the product is new and in a well-established market there is no need for any discount. In the instant case, the discount of 20% is uniformly offered in those areas of market where the product is new and new technology is to be introduced which is to be accepted by the buyers. To attract the buyers in new market, the additional discount has been given and in the case of Eicher Tractors Ltd (2000 (11) TMI 139 - SUPREME COURT OF INDIA) it is held that a discount is a commercially acceptable measure which may be resorted to by a vendor for a variety of reasons including stock clearance. A price list is really no more than a general quotation. It does not preclude discounts on the listed price. When a discount is permissible commercially, and there is nothing to show that the same would not have been offered to anyone else wishing to buy the old stock, there is no reason why the declared value in question was not accepted under Rule 4(1). As revenue has not produced any extra evidence which can be proved that being a related person the price is influenced and more discount has been given to the appellants as a related person the transaction value produced by the appellants is acceptable. In favour of assessee.
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