TMI Blog2008 (1) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... The present appeal has been filed by the Revenue under Section 130A of the Customs Act, 1962 (the Act) against the final order being Order No. A-704/Kol./2001 dated 9th August, 2001 in Appeal No. C/V-296/2001 passed by the Customs, Excise Gold (Control) Appellate Tribunal, Eastern Bench, Kolkata, (for short 'the Tribunal') whereby the Tribunal allowed the appeal of the respondent-assessee. 2. M/s. Initiating Explosives Systems India Ltd., the respondent herein, had been importing "Orange Shock Tube" from M/s. The Ensign Bickform Co., 660, Hopmeadow Street, USA (hereinafter referred to as, 'the exporter') at a unit price of US$ 15.00/1000 ft. (0.015/ft.) which was the declared value of the tubes till November, 2000. In November, 2000, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 14(1A) of the Act and the said value cannot be determined as per Rule 4 of the Customs Valuation Rules, 1988 because buyer and seller are related and the relationship has influenced the price reduction. This finding was arrived at as the exporter was having 30% holding in the paid up share capital of the respondent. He further observed that value has to be determined as per Rule 5 of the said Rules, viz., transaction value of identical goods. Accordingly, the goods were ordered to be assessed at the enhanced value for duty, viz., US$ 14.10/1000 ft. (0.0141/ft.) FOB. 6. Commissioner (Appeals) confirmed the order passed by the Dy. Commissioner aggrieved against which the respondent carried an appeal to the Tribunal. The Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent did not hold any equity in the unit of the supplier. This finding has been recorded following the decisions in the case of Daewoo Motors India Ltd . (supra) and Maruti Udyog Ltd., Gurgaon (supra) which have attained finality. There is no doubt that the respondent had imported the identical goods at a higher price prior to the agreement dated 16th April, 2001/23rd April, 2001, but, the respondent had purchased goods in question at a lesser price from the exporter only after the said agreement subject to the condition that the respondent shall purchase 100% of its annual requirement from the same exporter. 9. We find from the record that the respondent had purchased 7.15 lac metres during the year 1997-98, 1.3 crore metres ..... X X X X Extracts X X X X X X X X Extracts X X X X
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