TaxTMI 
TaxTMI 
2004 (7) TMI 550
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....t. [Order per : S.S. Sekhon, Member (T)]. - Heard both sides and considered the matter. It is found that - (a) Proceedings were launched pursuant to an intelligence to the effect that 'Vinyl Sign Cutting Machines' were being imported by grossly undervaluing the same. Enquires were caused and notice were issued to the appellants herein. (b) One m....
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....) Ltd., which were import BES for these machines and other goods effected by other firms. M/s. Arrow Coated (P) Ltd., were found to have imported 6 different models of Vinyl Cutting Machines. A copy of Price list of the supplier was also recovered. (d) Statement of Shri Shilpan Palel, who was the Managing Director of M/s. Arrow Coated (P) Ltd., ACPL & PPL recorded revealed....
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....bsp; Shri Shilpan Patil also explained his imports to be of discontinued models sent on inventory clearance by suppliers, and were at lower negotiated prices for Demo machines. (e) The adjudicator, after accepting the plea of the machines being Demo models, concluded that "the price at which the subject machines was procured were introductory ....
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....ess of supplier, i.e. marketability cannot be a reason for arrival to reject the transaction value. The rejection of Transaction value therefore cannot be upheld. (g) Negotiated prices with special discounts claimed, are acceptable, following the Apex Court ruling in case of Basant Industries - 1996 (81) E.L.T. 195 (S.C.) and we find force in reliance on the decision of Ei....