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Commissioner of Customs and Service Tax Versus Jenoptik India Pvt Ltd

2017 (12) TMI 1515 - CESTAT BANGALORE

Valuation - discount - includibility - related party transaction - goods imported from their principals for purposes of stock and sale - Held that: - the quantum of imports made by the respondent justify the same to be categorized as a separate class of buyers - the order passed by the learned Commissioner(Appeals) is reasonable. He has given detailed reasons justifying the grant of discounts - appeal dismissed - decided against Revenue. - C/Stay/20818/2016 in C/21462/2016-DB C/21462/2016-DB - F .....

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GmbH, Germany. The dispute 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% .....

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order, Revenue has filed the present appeal along with stay application. 2. With the above background, we heard learned AR Shri Madhupsharan as well as Smt. Rukmani Menon, learned Advocate for the respondent. 3. Explaining the grounds of the Revenue appeal as well as stay application, the learned AR submits that: i. In addition to the appellant, the foreign principal also supplies similar goods directly to end-users. Such end users are not entitled to any discounts and they are required to pay .....

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of parts etc. It is the submission of the Revenue that such business risks will not justify discounts to this extent since it is possible for the respondent to plan the imports in such a way that cost of investment and business risks in the activity is minimal. 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. .....

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whereas they are appointed as sole distributor and carried out stock and sale and also undertakes after sale services. v. The end user importers and sole distributor constitute different class of buyers and their imports cannot be compared as they were at different commercial levels. vi. They stock and sell various spares. Besides this, they undertake the activity of after sales services, administration and marketing. As a subsidiary, they take several risks like holding inventory obsolescence, .....

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