TMI Blog2015 (2) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction value is rejected, then the value has to be determined sequentially following Rules 4 to 8 of CVR, 2007 which the appellate authority has failed to do. Since there are no contemporaneous imports of similar or identical goods, the assessing authority has determined the value adopting the deductive method under Rule 7 and found the transaction value to be acceptable. There is no rebuttal by the appellate authority as to why this conclusion drawn by the assessing authority is wrong and therefore, the reasoning adopted by the lower appellate authority is completely mis-placed. In the facts of the present case, there is no allegation of any flow back or payment of any additional consideration by the appellant to the foreign supplier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant makes the following submissions. 2.1 The transactions of the appellant in respect of supplies received from the related foreign entity was examined at length by the Assistant Commissioner of Customs, GATT Valuation Cell, Mumbai vide order dated 18/11/2011. The Assessing Officer after considering the documents submitted by the appellant came to the conclusion that the prices for the transaction is a transfer price which was arrived at on costs plus method after taking into account the raw materials costs, manufacturing costs plus profit margin of 25%. Since the cost plus method is an acceptable principle of valuation, he held that the transfer price arrived at on that basis can be accepted as transaction value. The assessing au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent angles and therefore, the impugned order is unsustainable in law. The learned Counsel relies on the decision of this Tribunal in the case of Ashland India Pvt. Ltd., vide order No. A/1064/13/CSTB/C-I dated 15/05/2013 wherein also a more or less identical issue was involved and wherein it was held that in the absence of any specific findings rebutting the claims of the importer, enhancement of value cannot be done. Reliance is placed on the decision of this Tribunal in the case of Rehau Polymers Pvt. Ltd., vide order No. A/25/13/CSTB/C-I dated 18/12/2012, wherein also it was held that in the absence of any contemporaneous imports price by independent buyers and in the absence of any allegation of any flow back of any consideration from t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and accordingly he has come to the conclusion that the transaction value can be accepted. The reasoning adopted by the assessing officer in his order dated 18/11/2011 is impeccable and we do not find any reason to take a different view. On the contrary, we find that the lower appellate authority has not given any reasoning as to why the transaction value cannot be accepted. The only reason given is that Rule 12 provides for rejection of transaction value involving special discounts limited to exclusive agents. The learned lower appellate authority has ignored the fact that Rule 12 does not provide for a method of valuation as explicitly stated therein. It only mentions the circumstances under which transaction value can be rejected. Once th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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