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2015 (10) TMI 205 - AT - CustomsValuation - Related person - Determination of transactional value - Held that:- Both the adjudicating authority and the Commissioner (Appeals) have not passed a well reasoned order. There is no dispute on the fact that the appellant is related to the supplier (Principal) being a 100% subsidiary of the supplier. Rule 3 of the Valuation Rules provides for discarding the invoice price if there is evidence that the relationship between the supplier and the importer has influenced the price. The facts in this case are that the appellant is receiving goods at a value which is discounted by 35 to 45% on the value in the List price. There is no evidence whatsoever forthcoming from the record that the relationship has influenced the price. Mere passing of discount by the supplier to the importer does not necessarily lead to a conclusion that the discount has been passed on account of the relationship. The appellant have explained that the discount was also given to an independent dealer. The commission received by the appellant to the extent of 15% over the price at which Inteltek was importing the goods is also explained by them. This is a normal commercial practice. Unfortunately, neither the adjudicating authority nor the Commissioner (Appeals) have followed the legal provisions and judicial pronouncements in rejecting the transaction value declared by the appellant. They have not proceeded sequentially through the Valuation Rules in determining the value. The whole case has been dealt by the lower authorities in a very casual manner without examining the evidence and circumstances provided by the appellant in the form of import by another independent dealer and the provisions of law, particularly the Valuation Rules. Therefore, it would be most appropriate to remand this case back to the adjudicating authority for taking a proper legal view in the matter. - Decided in favour of assessee.
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