2014 (2) TMI 1104

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....the stay as well as the appeal are taken up together for consideration and disposal. 3. Brief facts of the case are that the appellant is the manufacturer of motor vehicles such 'Skoda Fabia', 'Volkswagen Polo' and Volkswagen Vento'. In order to set up its manufacturing plant and start commercial production of vehicles they imported capital goods, auto parts and components. The appellant imported the goods from their group of companies. As the goods were imported by the appellant from related person, the matter was referred to Special Valuation Cell and the Special Valuation Cell while investigating the case found that 'Skoda', Auto India Pvt. Ltd. have also imported certain auto parts and components for manufacture of vehicles at h....

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....by the appellant as spare parts and any top motor vehicle industries without spare parts, the vehicle is not usable. Therefore spare parts are always sold at higher price. In this circumstances, the decision of rejecting the transaction value is not justified and the impugned order is to be set aside because in the impugned order the Commissioner (Appeals) has held that no positive evidence has been produced by the appellant to prove that transaction value is not effected as a related person. In fact all the documents certifying that the transaction value is not effected being related were supplied before SVC as well as before the Commissioner (Appeals) but the Commissioner (Appeals) did not bother to consider those evidence produced by the....

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....ise side." In the case of Volvo India Pvt. Ltd. (supra) this Tribunal held that just because spare parts cost much more than OE, one cannot enhance value of OE for assessment purpose. The appellant has stated that the OE is imported is much higher than that of those of the spare parts. Moreover, the spare parts have to be kept for fairly a longer time. All these facts influenced the price of the spare parts. It is also seen that simply for the reason that the appellant and the exporters are related persons, we cannot enhance the price of OE to the level of the spare parts unless it has been shown that the relationship has influenced the price. It is for the department to do thorough investigation and come out with evidence to show that t....

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....A) does not arise. In the absence of such evidence, invoice price has to be accepted as the transaction value. Invoice is the evidence of value. Casting suspicion on invoice produced by the importer is not sufficient to reject it as evidence of value of imported goods. Undervaluation has to be proved. If the charge of undervaluation cannot be supported either by evidence or information about comparable imports, the benefit of doubt must go to the importer. If the department wants to allege undervaluation, it must make detailed inquiries, collect material and also adequate evidence. When undervaluation is alleged, the department has to prove it by evidence or information about comparable imports. For proving undervaluation, if the department....