2017 (11) TMI 49

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....ement for Hitachi Mill" sold on High Sea Sale basis to M/s Bhushan Steel Ltd. who filed bill of entry for the said goods on the ground that they have purchased the same on High Sea Sale basis from M/s ABB Ltd. The officers conducted certain verification of documents submitted by the appellant and entertained a view that the claim for High Sea Sale cannot be excepted and also certain discounts claimed for valuation is also not admissible. On these two issues, proceedings were initiated against both M/s Bhushan Steel Ltd. and M/s ABB Ltd., alongwith others. The impugned order decided the case holding that the High Sea Sale is not valid. The goods under import were ordered to be confiscated with the permission to redeem on fine of Rs. 10,00,00....

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....as transaction between related persons attracting guidelines of SVB. 4. The learned Counsel for the appellants strongly pleaded for setting aside the penalties imposed on the main appellant as well as second appellant as there is no intended violation of provision of Customs Act to evade any duty. Further, he submitted that the bill of entry filed contained all details which are facts and there is no mis-declaration attracting confiscation of goods under Section 111 (m). 5. The learned AR reiterated the findings of the Original Authority. He submitted that it is clear that the agreement for High Sea Sale was shown signed on 23/12/2011 on a stamp paper which is sold on 29/12/2011. This clearly puts question mark on the authenticity of ....

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....establish High Sea Sale transaction becomes seriously jeopardized in the face of such untenable document filed before the authorities. Accordingly, we hold that the Original Authority has correctly rejecting such agreement. 8. The next question for consideration is the discount of 20% claimed by the importer. Admittedly, the said discount is a special discount for which no explanation was offered by the importer. It is also an admitted fact that the seller and M/s ABB India who placed orders, are part of the same group and the transaction are to be scrutinized for special relationship. In other words, the sale value between these two companies of the same group cannot be accepted as transaction value for Customs duty unless the relations....