2005 (1) TMI 475

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.... are not in dispute. 2. M/s. Habasit Holding AG, Switzerland, the foreign supplier holds 51% shares in M/s. Habasit Iakota Pvt. Ltd. the Indian Importer who is the respondents before us. The Swiss Company has two agreements with the respondents "Technical Collaboration Agreement" and "Marketing and Distribution Agreement". On examination of these two agreements and other correspondence, the original authority has come to the conclusion that the Swiss Company and the Indian Company are related. Apart from the fact that the Swiss Habasit holds the controlling share of 51% equity in the Indian Habasit, the former appoints three directors in the Board of the latter with the additional right to nominate a Director of its choice to be the....

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....g length to other independent importers. 4. On comparison, the original authority found that the Swiss Company is allowing a 20% discount to independent buyers, whereas the respondents have been charged a lower price after allowing a 33.3% discount. In other words, the respondents are not being charged 20% towards the cutting and joining charges and in addition they are being given a discount of 33.3% as against 20% to others. Under the circumstances, the original authority cannot be faulted for having come to the conclusion that the price charged to the respondents is influenced by their relationship with the supplier Swiss Company. 5. Once it is held that the supplier and the importer are related and the relationship has i....