TaxTMI 
TaxTMI 
2016 (12) TMI 963
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....termined the assessable value of their imported goods under Rule 8 (2) of the Customs Valuation Rules, 1988. Ld. Advocate submitted that appellant has imported certain drug formulations from their sister concern M/s. Concept Pharmaceuticals Ltd., Nepal under bill of entry dated-5/12/2000. That first appellate authority in his findings in para 8 of Order-in-Appeal dated 26/3/2014 has given conflicting findings by holding that both the supplier and importer are related persons and at the same time held that transaction value cannot be made applicable to the present imports. Ld. Advocate appearing on behalf of the appellant submitted that if the supplier and the importer are treated as related persons then valuation of the goods was required t....
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....ds has to be determined under Rule 7A of Customs Valuation Rules. 4. Shri K.C. Jena, ADC, (A.R) appearing on behalf of the Revenue argued that both the supplier of the goods and importer are related persons but valuation under Rule 7A of the Customs Valuation Rules, 1988 could not be done as appellant failed to provide the data required under Rule 7A of the Customs Valuation Rules 1988 read with Interpretative notes to Customs Valuation Rules, 1988. That in the absence of data to be provided by the appellant, valuation has been correctly resorted to by the Adjudicating authority under the residual method provided as per Rule 8 of the Customs Valuation Rules, 1988. Ld. A.R. strongly defended the order passed by the first appellate authority....
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.... a computed value, however, it may be necessary to examine the costs of producing the goods being valued and other information which has to be obtained from outside India. Furthermore, in most cases, the producer of the goods will be outside the jurisdiction of the proper officer. The use of the computed value method will generally be limited to those cases where the buyer and seller are related, and the producer is prepared to supply to the proper officer the necessary costings and to provide facilities for any subsequent verification which may be necessary. 2. The "cost or value" referred to in clause (a) of rule 7A is to be determined on the basis of information relating to the production of the goods being valued supplied by or on beha....
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....particular case, the producer's profit figure is low and his general expenses are high, the producer's profit and general expenses taken together may nevertheless be consistent with that usually reflected in sales of goods of the same class or kind. Such a situation might occur, for example, if a product were being launched in India and the producer accepted a nil or low profit to offset high general expenses associated with the launch. Where the producer can demonstrate a low profit on his sales of the imported goods because of particular commercial circumstances, his actual profit figures should be taken into account provided that he has valid commercial reasons to justify them and his pricing policy reflects usual pricing policies in the....