TaxTMI 
TaxTMI 
2018 (8) TMI 1535
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....e of hydraulic systems for wind industries, from their related group companies which are outside the country. The Customs Authorities, Chennai, prima facie found that the petitioner (importer) and the Foreign Supplier are related under Rule 2(2) of the Custom Valuation (Determination of Valuation of Imported Goods) Rules 2007. The file was forwarded to SVB Custom house Chennai with the approval of the Commissioner of Customs - imports Chennai. Based on above reference and as per Board's circular No.11/2001 dated 23.01.2001 the case was registered in SVB and circular No.27/2011 - SVB dated 01.06.2011 was issued for provisional assessment of the imports with 1% extra duty deposit and the importers was requested to send their reply to the ....
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.... to this branch suo-motu by the importer without delay. The above decision has been taken on the basis of statements and declaration made by the importer. However, if there is any change in the method of invoicing, terms of relationship or any other material facts that would affect the valuation of goods under Customs Valuation Rules,2007 read with section 14(1) of Customs Act 1962, the importer or the concerned assigning group may inform the same to the Special Valuation Branch immediately so as to enable review of the decision in force. The imports thereafter will be assessed provisionally with Extra Duty Deposit equivalent to 1% of the assessable value. In case, there is nay factual error or commission, the same may be brought t....
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.... manufacturing unit in India in 2011 for manufacture of hydraulic systems, accessories and supply of the same to the wind turbine manufacturer, M/s.Gamesa India. They are the only global suppliers to Gamesa and are placed at Spain, China, Brazil, UK and US. Before their installation in India, direct supplies of assembled products have been made from their Parent Company in China. The price variation of the capital goods and components is because of the supply of assembled products to Gamesa. Whereas, the imports made by the Indian Company are SKD/CKD products which required some assembling process to make them a finished product. It is clear from the above that it is not a simple valuation, investigation pertain to the respondent a....
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.... not be for individual purchases/supplies as the same will/shall not include the taxes leviable on the imported goods. If the above term indicates the payment to be made to the supplier on sale value of the manufactured article (net of taxes), which appears to be logically correct as per the above wordings, then the above said agreement in direct becomes the condition of sale of the imported goods. Further the margin of profit was also not discussed by the lower authority which forms part of the Rule 3(3)(a) verification under CVR, 2007. Interpretative note to Rule 3(3)(a) of CVR 2007 states in this regard that where it is shown that the price is adequate to ensure recovery of all costs plus a profit which is representative of the ....
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....that the appellate authorities has came to a wrong conclusion. The Tribunal therefore, upheld the order of the original authority, which held that the price variation for capital goods and components, is because of the supply of assembled products to M/s.Gamesa Wind, whereas, the imports made by the appellant in SKD/CKD products, required some assembling process to make for the finished products. 6. The Tribunal also held that Article 19 of the agreement, appears only to be a standard clause to fix the liability for discharging Government tax and duties etc., and that it is not a condition for sale. The Appellate Tribunal also held that the grounds on which the appeal was remanded was not a part of the show cause notice nor was it raised....