TaxTMI 
TaxTMI 
2016 (11) TMI 335
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....s. 6,79,67,328/- and recovering differential duty in excess of that already paid at the time of clearance, for disallowing the concessional rate of duty under the Export Promotion Capital Goods Scheme and for having misdeclared the value and description warranting reclassification to 8479.89, for consequent recovery of duty of Rs. 3,23,81,682/- and for imposition of penalty under section 114A of Customs Act, 1962 on the importer and on specific individuals under section 112 of Customs Act, 1962. 2. It was alleged that goods were cleared against an invoice showing value of 1,46,34,787/- Francs (Rs. 1,51,96,763/-) and on payment of duty of Rs. 25,22,717/- upon classifying under 8421.29 of First Schedule to the Customs Tariff Act, 1975 ....
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....and pressed for modification of the impugned order. 4. Learned Chartered Accountant reiterated that the invoices reflected the transaction value and that the fairness of valuation had been certified by a Chartered Engineer. It was contended that there is no evidence of the relationship between buyer and seller having influenced the price, that the reliance on the insured value is improper as the Rules do not permit it and that insurance contract is entered into on many considerations that may have nothing to do with value. Reliance was placed on the decision of the Hon'ble Supreme Court in Tolin Rubbers Pvt. Ltd. v. Commissioner of Customs, Cochin [2004 (163) ELT 289 (SC)] and that of this bench of the Tribunal in I S Corporati....
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....n of the imported goods. No investigation has been conducted apart from insurance policy which was issued at the behest of the supplier of the goods to show that the value mentioned in insurance documents are actual price of the goods. The goods were sold by foreign supplier of CIF basis and it was his lookout to get the goods insured. The higher amount of value shown in such insurance documents cannot be ground to enhance the value. The coordinate bench of the Tribunal in the case of M/s Anand Mahindra Vs CC (Import) Mumbai 2008 (226) ELT 371 (Tri. Mum) as affirmed by Hon'ble Bombay High Court- 2009 (244) ELT 340 (Bom), Nina Chaka Pvt. Ltd. Vs CC, New Delhi 2004 (163) ELT 464 (Tri. Del.) has held that the value cannot be en....
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.... condition or consideration for which a value cannot be determined in respect of the goods being valued; (g) no part of the proceeds of any subsequent resale, disposal or use of the goods by the buyer will accrue directly or indirectly to the seller, unless an appropriate adjustment can be made in accordance with the provisions of Rule 9 of these rules; and (h) the buyer and seller are not related, or where the buyer and seller are related, that transaction value is acceptable for customs purposes under the provisions of sub-rule (3) below. (3)(a) Where the buyer and seller are related, the transaction value shall be accepted provided that the examination of the circumstances of the sale of the importe....