https://www.taxtmi.com/caselaws?id=218066 Under the Customs Valuation Rules, 1988, related-person status under Rule 2(2)(iv) arises only where a third person directly or indirectly owns, controls or holds at least 5% of the outstanding voting stock or shares of both parties. A foreign supplier's 35% shareholding in the Indian importer, by itself, did not meet that test, so the parties were not related. Once no related relationship was proved, Rule 4(3) on price influence did not apply. The valuation rules also provided separate treatment for royalties and licence fees, leaving no basis for an arbitrary 20% enhancement of assessable value. The rejection of transaction value was therefore not justified. en-us Wed, 07 Dec 2011 00:00:00 +0530 Fri, 02 Nov 2012 10:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218066 Under the Customs Valuation Rules, 1988, related-person status under Rule 2(2)(iv) arises only where a third person directly or indirectly owns, controls or holds at least 5% of the outstanding voting stock or shares of both parties. A foreign supplier's 35% shareholding in the Indian importer, by itself, did not meet that test, so the parties were not related. Once no related relationship was proved, Rule 4(3) on price influence did not apply. The valuation rules also provided separate treatment for royalties and licence fees, leaving no basis for an arbitrary 20% enhancement of assessable value. The rejection of transaction value was therefore not justified. Case-Laws Customs Wed, 07 Dec 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218066