Marketing support and subcontracted client contracts: no agency permanent establishment under Article 5 DTAA; arm's-length pricing bars profit attribu...
Imported goods were found, on examination and CRCL testing, to be polyester filament yarn fabric though declared as viscose polyamide woven fabric; the importer did not dispute the mis-declaration and accepted re-classification and consequent re-assessment, so reclassification was sustained. Since the invoice related to different goods, the proper officer had reasonable doubt under Rule 12 to reject the declared transaction value; as no supporting evidence was produced, value was correctly re-determined under the sequential rules using contemporaneous import data of similar goods, and differential duty was sustained. Mis-declaration attracted confiscation under s.111(m); redemption fine at about 10% of value was upheld, and mandatory penalty equal to duty under s.114A was affirmed; appeal dismissed. - CESTAT
Imported goods were found, on examination and CRCL testing, to be polyester filament yarn fabric though declared as viscose polyamide woven fabric; the importer did not dispute the mis-declaration and accepted re-classification and consequent re-assessment, so reclassification was sustained. Since the invoice related to different goods, the proper officer had reasonable doubt under Rule 12 to reject the declared transaction value; as no supporting evidence was produced, value was correctly re-determined under the sequential rules using contemporaneous import data of similar goods, and differential duty was sustained. Mis-declaration attracted confiscation under s.111(m); redemption fine at about 10% of value was upheld, and mandatory penalty equal to duty under s.114A was affirmed; appeal dismissed. - CESTAT
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