2016 (11) TMI 846

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....ered into an agreement with Meccanica RPC s.r.l. an Italian Corporation for technical assistance for manufacture of contract product. The adjudicating authority had examined the contract and had held that MPL and Meccanica RPC , Italy are joint venture wherein Meccanica RPC , Italy hold 54% share in MPL. The original adjudicating authority had held that MPL Meccanica RPC Italy are related parties. Since MPL could not submit any evidence to demonstrate that the inputs value are not influenced by relationship 20% loading was done on the declared CIF value resorting to Rule 8 of the Customs Valuation Rules, 1988. The original adjudicating authority also directed to load the technical know-how fee/lump sum payments made by MPL to its foreign co....

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....y had submitted enough evidence in respect of imports. In para 2 of the cross objection following has been stated: "The imported raw material such as Grilamid Plastic Granules, stamping foil, etc., for manufacturing the said products. They imported one Hot stamping machine and power press with one progressive stamping tool from the collaborator. " 3. We have gone through the rival submissions. We find that the Commissioner (Appeals) have examined the comparable imports in detail. The Commissioner (Appeals) has observed as follows in respect of comparable imports: "I have gone through the records of the case. The appellants and the supplier are related under Rule 2 (2) and the same is not a point of dispute. As per the l....

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....tionship and the declared price needs to be accepted under Rule 4 (3) (a)." 4. When these observations are examined with the demands of imports submitted by the importer before the Commissioner (Appeals). It is seen that the price of imports made by the appellants are roughly the same as price at which they have been procured by the foreign collaborator from other parties. Further, we have been informed that these items are in the nature of plastic granules. It can be seen that plastic granules would not be covered by the technology transfer agreement as the contract product defined in the agreement mean only injection moulded parts sub-assemblies and related items. Out of it a plastic injection moulds. Similarly, in case of stamping foi....