TMI Blog2018 (2) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... freight cost incurred by the foreign supplier in procuring the goods within country of origin, or, for that matter, the margin of profit will not be added to local purchase cost to arrive at selling cost to Indian buyer, the appellant. This would certainly be the case if M/s.Biesse SPA, Italy would have sold the goods to any non-related buyer in India or in any other part of the world. Appellants have also not been able to establish that M/s. Biesse SPA, Italy sold identical or similar goods to other importers in India at the same price. They have themselves not able to satisfy the requirements of Rule 43 A & B of the CVR, 1988. Appeal dismissed - decided against appellant. - C/00265/2009 - 42794/2017 - Dated:- 7-11-2017 - Smt. Sul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... related, which facility would not be extended to any unrelated buyer in India. The original authority based on the above finding held that the relationship had influenced the price and has ordered a loading of 10% to the transaction value of the goods supplied by the related supplier. 2. In appeal, Commissioner (Appeals) vide impugned order dated 28.05.2009 upheld the order of original authority and rejected the appeal. Hence, the appellants are before this forum. 3. On 25.09.2017, when the matter came up for hearing, on behalf of the appellants Ld. advocate Shri V. Raghuraman made oral submissions, which can be broadly summarised as under:- (a) There is no evidence provided or investigation conducted for the apportionment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent with regard to the presence of special circumstances found in Rule 4(2) to the instant case on hand; (f) Further, when there were contemporaneous imports at comparable prices for finished goods and none for the other imports, it would show that the relationship did not influence the price and had to be accepted under Rule(3)(b). Therefore, it is submitted that there is no relationship between the foreign supplier and the appellants and transaction value is the basis for valuation of imported goods; (g) There is no relationship between the appellants and M/s. Biesse SPA, Italy except for the fact that M/s. Biesse SPA, Italy holds 100% investment in the shares of the appellants, thereby, appellants being a wholly owned subsidiar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o interest in the business of the other and the price is the sale consideration for the sale or the offer for sale. This is the essence of section 14(1) of the Act. Where the transaction value cannot be accepted as the assessable value, the provisions of section 14(1)(a) will kick in and the value will have to be determined in accordance with the CVR, 1988. 6.3 In case where the buyer and seller are related, the transaction value shall be accepted, provided that the examination of the circumstances of the sale of the imported goods indicate that the relationship did not influence the price or, when the importer is able to demonstrate that the declared value of the goods, closely proximate to transaction value of identical goods or simila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants have also not been able to establish that M/s. Biesse SPA, Italy sold identical or similar goods to other importers in India at the same price. They have themselves not able to satisfy the requirements of Rule 43 A B of the CVR, 1988. 9. Viewed in this light, we are not able to find any infirmity in the order of the lower appellate authority upholding the order of the original authority upholding that the appellants and M/s. Biesse SPA, Italy are related and that the relationship has influenced the redetermination of transaction value in terms of Rule 8 of CVR, 1988 by way of holding of 10% of the transaction value. 10. We, therefore find no merit in the appeal for which reason, it is dismissed. (Pronounced in open court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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