TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>CESTAT ruling favors 100% EOU in valuation dispute</h1> <h3>CADILA HEALTHCARE LTD. Versus COMMISSIONER OF C. EX., VADODARA</h3> CADILA HEALTHCARE LTD. Versus COMMISSIONER OF C. EX., VADODARA - 2008 (224) E.L.T. 108 (Tri. - Ahmd.) Issues:- Discrepancy in valuation of goods for DTA sales compared to exports- Imposition of duty, interest, and penalty by the original authority- Appeal against the Commissioner (Appeals) decisionAnalysis:1. The appellant, a 100% EOU, cleared finished products for DTA sale at a value lower than identical goods exported. The original authority ordered duty recovery, interest, and penalty. The Commissioner (Appeals) upheld duty demand and interest but set aside the penalty, citing lower DTA sales value as the reason.2. The appellant's advocate argued that export value depends on various factors and cannot be the standard for DTA sales. No evidence of deliberate under-valuation was presented, challenging the sustainability of the demand.3. The SDR contended that the DTA sales value was significantly lower (25-30%) than the export value declared for Development Commissioner's permission. Both sides' submissions were carefully considered.4. The Tribunal rejected the notion that DTA clearance value must match export value, noting variations due to different customer negotiations, especially across countries. The declared transaction value for DTA clearance was accepted, with no evidence of manipulation found.5. Referring to a previous case, the Tribunal emphasized that the transaction price should be the basis for customs valuation, supporting the appellant's position.6. Ultimately, the appeal was allowed with consequential relief, highlighting the importance of transaction value in determining duty for DTA clearances. The judgment emphasized the validity of the appellant's declared value and rejected the imposition of duty based on a different FOB value for exports.Conclusion:The judgment from the Appellate Tribunal CESTAT, Ahmedabad favored the appellant, a 100% EOU, in a dispute over the valuation of goods for DTA sales compared to exports. It emphasized the significance of the declared transaction value for DTA clearances and rejected the imposition of duty based on a different FOB value for exports. The decision provided relief to the appellant, setting aside the penalty and upholding the transaction value as the appropriate measure for customs valuation.
TaxTMI 
TaxTMI 
