2017 (1) TMI 1

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....n the respondent company. The department took the view that imports have taken place from related supplier and the Special Valuation Brand (SVB) looked into the pattern of valuation of such imports. The original authority, viz. the Deputy Commissioner (SVB), vide his order dated 1.2.2013 decided to accept the import value declared in the invoice Revenue appealed against this order. However, in the impugned order the valuation, on the basis of transaction value, was upheld. Revenue, not being satisfied with the impugned order has filed the present appeal on the same ground agitated before Commissioner (Appeals). These grounds in brief are as follows: 1) The order-in-original is a non-speaking order. As per Rule 3 of the Valuation Rules 200....

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.... only be required where there are doubts about the acceptability of the price. Where the proper officer of customs has no doubts about the acceptability of the price, it should be accepted without requesting further information from the importer. 5.3 Thus, Rule 3(3)(a) of the Valuation Rules mandates that in case of transactions between related persons, the proper officer shall examine the circumstances of sale between the buyer and seller and accept the declared values of the imported goods if he finds that the same are not influenced by the relationship. Only in case of any doubt, the proper officer would request the importer for further information. In Interpretative Notes to Rule 3(3)(a) two examples are given to illustrate situation....

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.... of Rule 3(3)(b) in the instant case raised by the Revenue, I find that under Rule 13 of the Valuation Rules, 2007, Interpretative Notes to Rule 3(3) explain that Rule (3)(3)(a) and Rule 3(3)(b) provide different means of establishing the acceptability of a transaction value. Rule 3(3)(b) of the Valuation Rules provides an opportunity for the importer to demonstrate that the transaction value closely approximates to a test value previously accepted by the proper officer of customs and is therefore acceptable under the provisions of Rule 3. Thus, under Rule 3(3)(b) of the Valuation Rules, a responsibility is cast on the importer to prove that their declared invoice values are not influenced by the relationship between the buyer and seller by....