9911796707
TMI Blog2024 (2) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Customs, Special Valuation Branch (SVB) Mumbai passed an ex parte order rejecting the declared invoice value and for loading of declared invoice price by 100% under the provisions of Rule 8 read with Rule 9 of the Customs Valuation Rules, 2007. Thereafter, when the office of the Appellant was shifted to Bangalore on 02.06.2007, the Appellant stopped import from Chem Trend, Singapore and started to import from Chem Trend, USA. The Appellant filed documents before the SVB Chennai which was transferred to SVB Bangalore. Appellant had submitted various documents pertaining to operation and valuation of goods. Appellant had also produced import prices, comparing the import price with transfer price list by way of comparison and submitted that the goods are supplied across the global to the other related parties at the same price as mentioned in the Appellant's price list. However, the Assistant Commissioner, SVB Bangalore passed an order dated 02.02.2016 ordering loading of 100% value on the declared price along with addition of payment made towards royalty under Rule 10(1)(c) of the Customs Valuation Rules, 2007. Aggrieved by this order, an Appeal was filed before the Commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price of the imported goods is closely approximate to the deductive value. To substantiate the same, he produced the following details of profit and weighted profit for various years. Year Net Profit Margin Traded goods Manufacture goods Sales Turnover Net profit margin Sales Turnover Net Profit margin 2014-15 14.43% 41.26% 9.48% 58.74% 24.96% 2013-14 9.89% 44.85% 6.78% 55.15% 25.16% 2012-13 10.31% 39.96% 6.32% 60.04% 22.59% 2011-12 11.18% 38.73% 17.68% 61.27% 20.67% 2010.11 9.9% 58.56% 12.02% 41.44% 33.98% 2.1 The Learned Counsel further submits that if at all the Respondent resort to residuary method of valuation of goods under Rule 9 of the Customs Valuation Rules, 2007, it has to be done by reasonable means. The declared price of the goods may still be adopted as such identical goods are exported at the same price to countries other than India by M/s Chem Trend, USA. Though the Appellate authority has set aside the loading of 100% and addition of in the assessable value, upheld the rejection of declared value and remanded for redetermination of the value. Learned Counsel submits that royalty is payable only in cases where the goods are ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. Mumbai) (xxii) SI George India Ltd Vs CC, Mumbai (2015 (319) E.L.T 161 (Tri. Mumbai) (xxiii) Commr. of Cus, Chennai Vs Yapp India Automotive Systems Pvt Ltd (2016 (342) E.L.T 146 (Tri. Chennai) (xxiv) General Motors India Pvt Ltd Vs Commissioner of Customs (Import), Mumbai (2009 (235) E.L.T 364 (Tri. Mumbai) (xxv) HSI Automative Ltd Vs Commissioner of Customs, Chennai (2008 (224) E.L.T 439 (Tri. Chennai) 3. Learned Authorized Representative reiterated the findings in the impugned order wherein the appellate authority upheld the rejection of invoice value and remanded the matter for redetermination of the assessable value. He also relied on the decision of Apex court in the matter of Matsushita Television & Audio (I) Ltd Vs CC (2007 (211) ELT 200 (SC). 4. Heard both sides. In the present case, appellant had filed petition before the SVB Chennai by producing sufficient documents to substantiate the transactional value declared by them at the time of import. However, the Assistant Commissioner, SVB Bangalore ordered loading of 100% value on the declared price along with addition of payment made towards royalty. The Original Authority rejects the transaction value only on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e between related persons, the transaction value shall be accepted, whenever the importer demonstrates that the declared value of the goods being valued, closely approximates to one of the following values ascertained at or about the same time. (i) the transaction value of identical goods, or of similar goods, in sales to unrelated buyers in India; (ii) the deductive value for identical goods or similar goods; (iii) the computed value for identical goods or similar goods: Provided that in applying the values used for comparison, due account shall be taken of demonstrated difference in commercial levels, quantity levels, adjustments in accordance with the provisions of rule 10 and cost incurred by the seller in sales in which he and the buyer are not related; (c) substitute values shall not be established under the provisions of clause (b) of this sub-rule. (4) if the value cannot be determined under the provisions of sub-rule (1), the value shall be determined by proceeding sequentially through rule 4 to 9. As seen from above, the 2% variation in the prices demonstrated by the appellant in the tables given below do not reflect as abnormal discounts to reject the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the declared value is not acceptable and in the present case revenue has failed to prove. Further in the case of Procter & Gamble Home Products Ltd (Supra) the Tribunal held that "On a careful consideration of the submissions made by both the sides, we are required to examine as to whether any mutuality of interest between the supplier and the importer in terms of flow back and profits and whether the transaction value can be rejected. It is now well settled that merely because the importer and the appellant is a related person and that by itself will not call for rejection of transaction value unless it is shown that the transaction is not at arm's length and there is flow back of funds. In this particular case, the appellant has produced enormous documents to show that the pricing has been uniform worldwide in respect of transaction between affiliates. The price at which the goods are bought and sold inter se affiliates of P & G is cost of raw materials and packing materials (including wastage), manufacture, overheads, logistic cost and uniform profit of 5% which the appellant refer it as Inter Company Billing Policy (ICBP). In support of this they have produced certificate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India and it is only for use of technology to produce the products in India. The facts as stated above, there is no justification to remand the matter for redetermination of the assessable value. 4.2 The Hon'ble Supreme Court in the case of CC Vs Ferodo India Pvt Ltd (Supra) observed that: "Rule 4(3)(b) of the CVR, 1988 provides for an opportunity for the importer to demonstrate that the transaction value closely approximates to a "test" value. A number of factors, therefore, have to be taken into consideration in determining whether one value "closely approximates" to another value. These factors include the nature of the imported goods, the nature of the industry itself, the difference in values etc. As stated above, Rule 4(3)(a) and Rule 4(3)(b) of the CVR, 1988 provides for different means of establishing the acceptability of a transaction value. In the case of Matsushita Television (supra) the pricing arrangement was not produced before the Department. In our view, the Consideration Clause in such circumstances is of relevance. As stated above, pricing arrangement and TAA are both to be seen by the Department. As stated above, in a given case, if the Consideration Clause in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
