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TMI Blog2015 (9) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... s no dispute that the foreign supplier and the respondent importer are related in terms of Rule 2(2) of the Customs Valuation Rules. The import from the group companies is covered under Sales Promotion Agreements. A price list exists at which the goods are supplied by the related supplier to the importers after giving suitable discount. The suppliers also supply the goods to other unrelated customers in India from whom they charge higher prices than the price in the Global Pricelist by 10% to 30%. The contention of respondents is that the difference between the prices charged to third party unrelated buyers and the prices at which they received the goods is paid to them by their Principal as a commission. This commission is paid for the "af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tween the Principal and the respondent to prove that there is an arrangement for giving commission in respect of sales to other customers. He also drew our attention to the Chart placed at Annexure 3 which is forwarded by the Additional Commissioner of Customs to the Additional Commissioner A.R. CESTAT, Mumbai on 23.7.2015. According to this chart, the variation in prices is much less than 55% in most cases. 4. We have carefully considered the submissions made by both sides. On facts, we find the order of the adjudicating authority woefully inadequate. The Annexure 3 referred above clearly indicates that the difference in prices for the respondent and independent buyers is much less than 55% for most of the products. It is not at all broug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price, which he states wrongly to be 55%, without examining the reasons for the price difference in proper prospective. He has failed to proceed legally to determine the value by sequentially following the Valuation Rules. In fact, he has not even touched upon the Valuation Rules, which provide the legal basis of arriving at the correct assessable value. Nor do the grounds of appeal appreciate the situation correctly in these terms. The reliance placed by the Ld. AR on various judgments does not apply to the facts of the present case. In the case of Oswal Woollen Mills Ltd. a special discount on the price of a single machine was denied. In case of Metal and Alloys Industries the international prices of the same product imported were consid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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