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TMI Blog2017 (12) TMI 1515X X X X Extracts X X X X X X X X Extracts X X X X ..... ispute in the present case is pertaining to the valution of goods imported from their principals for purposes of stock and sale. The importer and the foreign principal were considered as related persons and the valuation of such imports was the subject matter of investigation by the Special Valuation Branch, Bangalore (SVB). The order of SVB covering the imports up to 10/12/2015 was to the effect that the invoice values for such imports were to be loaded to the extent of 12% to 30% which were being allowed to the importer as discounts by the related foreign suppliers. When the issue came up for renewal proceedings, the adjudicating authority vide his Order-in-Original No.44/2016 dt. 19/01/2016, continued the earlier order of SVB. However wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii. It is also submitted that matter is recurring nature and the order may be stayed. 4. Learned counsel for the respondent justified the impugned order. Her submissions are summarized below:- i. They are appointed as a sole distributor. The related supplier offers the same discount to all the distributors worldwide. ii. The discount extended to them is for import and sales of customized spares and accessories based on business risk undertaken and post import services offered by them. iii. The discount extended to them is based on established discount structure and there is nothing to show that these discounts are given on the basis of relationship. iv. The other end user importers were importing smaller quantities for self use wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e discounts being offered to them by claiming that being the sole distributor of the products by the foreign principals in India, they undertake the activity of after sales service, administration, marketing etc. In this process, they undertake various types of risks such as risk of obsolescence, foreign exchange risk, training cost of engineers, coverage of warranty etc. Other importers, who import much smaller quantities for self-use do not provide such services and hence do not get such discounts. The lower authority has allowed such discounts mainly by taking the view that the quantum of imports made by the respondent justify the same to be categorized as a separate class of buyers. It is further argued that similar discounts as are bei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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