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2015 (9) TMI 1256 - CESTAT MUMBAI

2015 (9) TMI 1256 - CESTAT MUMBAI - 2015 (325) E.L.T. 173 (Tri. - Mumbai) - Valuation of goods - import from the group companies is covered under Sales Promotion Agreements. - price variation between the prices for importer and unrelated buyers - Held that:- order of the adjudicating authority woefully inadequate - difference in prices for the respondent and independent buyers is much less than 55% for most of the products. It is not at all brought forth in the adjudication order as to how the v .....

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ost incurred by the seller (in this case respondent) have to be considered while examining the influence on price by the relationship between the supplier and the importer. Therefore, even if similar goods sold to the unrelated buyer are taken as the basis of value of impugned goods in terms of Valuation Rules 4 & 5, adjustments have to be made on account of such factors as stated in proviso to Rule 3 (3) (b) of the Valuation Rules. In any case, the adjudicating authority simply considered the d .....

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c. We find no reason to reject the impugned order. - Decided against Revenue. - Appeal No. C/596/2010-Mum - Final Order No. A/3064/2015-WZB/CB - Dated:- 7-9-2015 - P. S. Pruthi, Member (T) And Ramesh Nair, Member (J) For the Appellant : Shri A K Singh, Additional Commissioner (AR) For the Respondent : Shri Prashant Patankar, Consultant ORDER Per P S Pruthi This appeal is filed by Revenue against the impugned Order-in-Appeal dt. 30.4.2010. The respondent imports goods from their related person M/ .....

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ther 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 "after sale" issues such as warranty period servicing, repairing, and replacement of parts. Revenue built its case around .....

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ted the declared invoice value and directed the assessing group to enhance the same to the value at which contemporaneous identical goods are imported by unrelated buyer. He also directed that after expiry of three years period, if no renewal is done by SVB order, the provisional assessment may be done with extra duty equivalent to 55% of the assessable value. The Commissioner (Appeals) set aside the adjudication order both on basis of facts as well as law. 2. Heard both sides. 3. The Ld. AR veh .....

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f 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 .....

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iformly. In majority of sales, the price to unrelated buyer was higher by 5.5% to 7.5%. 4.1. It is a well known commercial practice that the related buyer is given commission in respect of supplies by the supplier abroad to unrelated buyers in India. The Sales Promotion Agreement also provides for this commission. And this manner of grant of commission is upheld in various judicial pronouncement such as Premnath Diesels Pvt. Ltd. Vs. Commissioner of Customs, Calcutta 2000 (122) ELT 458 (Tribunal .....

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