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2018 (2) TMI 88 - AT - CustomsValuation - related party transaction - identical/similar goods - Held that: - it emerges that the appellants are 100% fully owned subsidiary of M/s. Biesse SPA, Italy, who is the supplier and seller. There is no doubt that the buyer and seller are related in view of Rule 2(2) of the CVR, 1988, for the purpose of Customs Act, 1962. The foreign supplier has procured the goods from third party suppliers and sold the same to the appellants at more or less the same price and in addition to ocean freight - we are not able to fathom, how in an international trade transaction, the freight cost incurred by the foreign supplier in procuring the goods within country of origin, or, for that matter, the margin of profit will not be added to local purchase cost to arrive at selling cost to Indian buyer, the appellant. This would certainly be the case if M/s.Biesse SPA, Italy would have sold the goods to any non-related buyer in India or in any other part of the world. Appellants have also not been able to establish that M/s. Biesse SPA, Italy sold identical or similar goods to other importers in India at the same price. They have themselves not able to satisfy the requirements of Rule 43 A & B of the CVR, 1988. Appeal dismissed - decided against appellant.
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