TMI Blog2018 (2) TMI 358X X X X Extracts X X X X X X X X Extracts X X X X ..... m cannot be translated into the notional transaction value for other predominant clearances of 2% strength AGC - the adoption of value of ₹ 48.14 per kg. to revise declared values of sub-standard and normal 2% IPA AGC is arbitrary and cannot be sustained - appeal allowed - decided in favor of appellant. - E/00002/2009 - 42247/2017 - Dated:- 14-8-2017 - Smt. Sulekha Beevi C.S, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) For the Appellant - Shri P. Sridharan, Adv. For the Respondent - Shri B. Balamurugan, AC (AR) ORDER Per: Bench The dispute in this appeal involves determination of value of Polyester Chips of Amorphous Grade [hereinafter referred to as PCAG ] with less than 2% IPA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessable value adopted was ₹ 33/- per kg. for normal grade and ₹ 30/- per kg. for sub-standard grade. For AGC with 40% IPA content, ₹ 48.14 per kg. was fixed taking into account the extra cost for processing the small quantity [2 MTS] and the enhanced IPA content; (iii) At the same time, the learned Commissioner (Appeals) has accepted the transaction value of the 2 MTS of 40% IPA AGC, thereby accepting that the relationship has not influenced the transaction value. Once transaction value has not been rejected, the value cannot be revised under the CVR, 1988; (iv) Under Rule 4(3)(b) of CVR, 1988, transaction value between related parties can be rejected only if it does not closely approximate to the value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptance for customs purposes the highest of two alternative values; (iii) The price of goods in the domestic market of the country of exportation; (iii-a) The cost of production other than the computed values which have been determined for identical or similar goods in accordance with the provisions of Rule 7A; (iv) The price of the goods for export to a country other than India; (v) Minimum customs value; or (vi) Arbitrary or fictitious values. 6. We find that the appellants are correct in contending that transaction between related persons can be rejected only if it does not closely proximate to the value of similar goods, to non-related persons. We find that the Commissioner (Appeals) has accepted transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he value adopted for payment of duty is in order, in terms of Rule 4(3)(b) of CVR and hence accepted the transaction value declared by the appellants. We are not able to fathom as to why the same lower appellate authority did not follow the same view earlier adopted by him, in the, present impugned order also. 9. Viewed in the totality of the discussions herein above, we find that the adoption of value of ₹ 48.14 per kg. to revise declared values of sub-standard and normal 2% IPA AGC is arbitrary and cannot be sustained, for which reason, the impugned order is set aside. Appeal is, therefore, allowed with consequential benefits, if any, as per law. (Operative part of the order pronounced in open court) - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
