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2020 (11) TMI 568 - Commissioner - GSTDetention of goods alongwith the conveyance - undervaluation of goods - Department has made the case against the appellant on the ground that the appellant had cleared the goods “on considerably lesser value keeping in view the MRP marked on goods with intent to evade tax” - HELD THAT:- Under GST law, taxable value is the transaction value, i.e. price actually paid or payable, provided the supplier and the recipient are not related and price is the sole consideration. In most of the cases of regular normal trade, invoice value will be the taxable value. However, to determine value of certain specific transactions, Determination of Value of Supply rules have been prescribed in CGST Rules, 2017. In GST, tax is payable on ad valorem basis, i.e. percentage of value of the supply of goods or services. Section 15 of the CGST Act and Rule 27 to Rule 35 of CGST Rules, 2017 contain provisions related to valuation of supply of goods or services made in different circumstances and to different persons. As per sub-section (1) of Section 15 of CGST Act, 2017 “The value of a supply of goods or services or both shall be the transaction value, which is the price actually paid or payable for the said supply of goods or services or both where the supplier and the recipient of the supply are not related and the price is the sole consideration for the supply”. In the instant case before me nothing was brought on record by the adjudicating authority to substantiate that the appellant has undervalued the goods and value declared by the appellant is not a true value in terms of Section 15(1) of CGST Act, 2017. No investigation was made by the concerned authority and simply on the basis of MRP the case was made for undervaluation. In GST law there is no provisions for determination of value on the basis of MRP. Therefore, the order passed by the adjudicating authority is contrary to the provision of CGST Act, 2017 and not sustainable. Appeal allowed - decided in favor of appellant.
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