Patent-settlement expenditure treated as commercially expedient revenue outlay, with foreign-law restrictions inapplicable before the prospective amen...
International transaction benchmarking restricts transfer pricing adjustments to associated-enterprise dealings, while functional comparability govern...
Joint development agreements defer taxable transfer where possession lacks part performance, while completed flats determine consideration and exempti...
Passenger baggage re-export requires true declaration and cannot be granted indirectly through discretionary redemption of undeclared prohibited goods...
CESTAT held that preferential exemption could not be denied by rejecting the Certificate of Origin and recomputing Local Value Added Content through an alternate method contrary to the Interim Rules of Origin. The Rules required computation with reference to FOB value and CIF value of non-originating materials, and the designated foreign authority's certificate could not be ignored without using the prescribed verification mechanism. Because the importer had produced the certificate and was not required to verify the supplier's internal cost structure, the exemption claim remained valid. Once exemption was upheld, the duty demand failed, and the extended period and penalties under Sections 114A and 114AA were unsustainable for want of wilful suppression or intent to evade duty.
CESTAT held that preferential exemption could not be denied by rejecting the Certificate of Origin and recomputing Local Value Added Content through an alternate method contrary to the Interim Rules of Origin. The Rules required computation with reference to FOB value and CIF value of non-originating materials, and the designated foreign authority's certificate could not be ignored without using the prescribed verification mechanism. Because the importer had produced the certificate and was not required to verify the supplier's internal cost structure, the exemption claim remained valid. Once exemption was upheld, the duty demand failed, and the extended period and penalties under Sections 114A and 114AA were unsustainable for want of wilful suppression or intent to evade duty.
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