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2017 (12) TMI 1515

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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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 when this Order-in-original was carried in appeal before the Commissioner(Appeals), the impugned order was passed in which it was held that the benefit of such discounts will be allowable to the respondent. Aggrieved by the impugned .....

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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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foreign exchange risks, maintenance of office expenses, training cost of engineers, coverage of warranty including replacement of parts during the warranty period. This justifies the discounts extended. 5. After hearing both sides and perusal of records, we find that there is no justification to stay the impugned order and hence the stay application filed by the Revenue is dismissed. With the concurrence of both parties, the appeal itself is taken up for a decision. 6. The respondent is related .....

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s. 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 being extended to the respondent are also being extended by the foreign principals to other distributors who are subsidiaries in other parts of the world. 7. After going through the records of the case and considering the facts and circumstances, we are of .....

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