Transcation value below manufacturing cost and profit

[RAM SHARMA]

Dear Experts,

As per Circular No. 979/03/2014-CX. Implementation  of decision of Hon’ble Supreme Court in case of M/s Fiat India ltd. If a company manufactured different type of product then it is necessary that every product selling price should be more then cost price as per above circular.

Please advice.

Thanks

AI Summary

Transaction value below cost: below-cost sales are not per se invalid but require credible commercial justification to avoid scrutiny.
Sale prices below manufacturing cost are not automatically disqualifying for declared transaction value; recognised exceptions include business switching and inability to sell goods within a reasonable time, and below-cost domestic pricing offset by export profits may prompt departmental scrutiny unless supported by credible commercial reasons or evidence of non-related-party transactions.