Prohibited importation of cosmetics without prior regulatory registration attracts seizure and confiscation; warehousing or re export claims do not cu...
Provisional release on security permitted where cash deposit plus bond secures differential duty; classification and treaty benefits referred for deci...
Customs Valuation Rule Sequence must be followed; single-comparator re-determination and penalties set aside without comparability or proof of mis-dec...
Separately Identifiable Services: transportation found to be the essential character, so Cargo Handling classification and extended limitation rejecte...
Section 80-IA(10) can curtail a deduction only where there is a close connection, an arrangement between the parties, and that arrangement produces more than ordinary profits. The Court held that extraordinary profits alone do not prove such an arrangement, and the Tribunal had not recorded a categorical finding of one. It further found that comparing a 100% export-oriented unit with a domestic sister concern was legally unsustainable because statutory benefits and cost structures differed materially, so no proper benchmark of ordinary profit was made. The restriction of the Section 10B deduction on the sister concern's profit margin was therefore quashed and the appeal allowed.
Section 80-IA(10) can curtail a deduction only where there is a close connection, an arrangement between the parties, and that arrangement produces more than ordinary profits. The Court held that extraordinary profits alone do not prove such an arrangement, and the Tribunal had not recorded a categorical finding of one. It further found that comparing a 100% export-oriented unit with a domestic sister concern was legally unsustainable because statutory benefits and cost structures differed materially, so no proper benchmark of ordinary profit was made. The restriction of the Section 10B deduction on the sister concern's profit margin was therefore quashed and the appeal allowed.
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