2005 (1) TMI 455

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....a. 2. Shri M. Chandrasekharan, learned Senior Advocate submitted that the duty has been confirmed and penalties have been imposed on the ground that M/s. Uniworth Textiles Ltd. and M/s. Uniworth International Ltd. are related persons which has influenced the price of fabrics sold by M/s. Uniworth Textile Ltd., a 100% EOU and that the fabrics sold were not the rejects but prime and flawless fabrics; that the adjudicating authority has rejected the transaction value and determined the assessable value under Rule 7 of the Customs Valuation Rules. The learned Senior Counsel contended that Rule 7 of the Customs Valuation Rules is applicable only when the goods are sold to persons who are not related; that as in the present matter, it is ....

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....le opportunity of being heard by the Department before taking a final decision under sub-rule (1) of Rule 10A; that no such opportunity had been granted and as such the proceedings are bad in law. Reliance has also been placed on the decision in the case of Tata Coffee Ltd. v. C.C.E., Hyderabad - 2004 (168) E.L.T. 460 (T-Bang.) wherein the Tribunal has held that FOB value of exported goods has to be taken as assessable value of the instant coffee sold in the Domestic Tariff Market by a 100% EOU in the absence of imports of identical or similar goods, relying upon the Circular dated 29-9-1994. Finally, he submitted that countervailing duty which has been confirmed in the impugned order has already been confirmed against the applicants in res....