TaxTMI 
TaxTMI 
2026 (2) TMI 1030
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....basis in 2001. While finalizing the assessment, the Show Cause Notice was issued on 21.06.2004, seeking to know as to why the value of engineering and technical services, agency commission etc payable to the local agent of the exporter, i.e. Voltas Ltd., should not be added to the FOB to arrive at the Customs Duty payable. The SCN demanded Customs duty of Rs.4,38,68,189. The Adjudicating authority finalized the assessment and confirmed the demand along with interest and penalty. Being aggrieved the appellant filed their appeal before the Kolkata Tribunal. Noting that the basic import documents were not properly provided to the appellant while passing the impugned order, the Tribunal remanded the matter to the Adjudicating authority with a d....
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....upheld the Final Assessment order and dismissed the appellant's appeal. Being aggrieved, they filed their appeal before the Kolkata Tribunal. The Tribunal vide its Final Order dated 20.04.2010, held that the payments made by appellant to Voltas Ltd was only in connection with the sale of goods and the same had a direct nexus with the value of the goods imported. Accordingly, the appeal filed by the appellant [importer] came to be dismissed by the Tribunal. Being dissatisfied with the order passed by the Tribunal, the appellant importer filed their SLP No.CA 8028 of 2010 before the Supreme Court. 3. During the earlier hearings, the importer appellant's counsel had submitted the issue is before the Hon'ble Supreme Court. Hence, adjournment....
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....f the Ld. Sr. Advocate on behalf of the appellant that 8 to 10% value of the imported parts have been adopted only as a measure for payment for services rendered by M/s Voltas Ltd. It is clearly a condition for sale of the goods to the appellant. If there are no imports, no payments are apparently due to be made to whatever services attributed to M/s Voltas. In other words, the payments have been made only in connection with the sale of goods, apparently due to reason that M/s Voltas Ltd., is an agent/distributor of the US based supplier. 25.1. CESTAT had carefully analysed the relevant documents and thereafter came to the conclusion that the services rendered were such that appellant faced no inconvenience at the time of importati....
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....orted goods is deemed to be the price at which such or like goods are ordinarily sold or offered for sale for delivery at the time and place of importation or exportation, as the case may be, in the course of international trade, where the seller and the buyer have no interest in the business of each other and the price is the sole consideration for the sale or offer of sale. 8. The CVR, 1988 recognises the fundamental principle of arm's length price while dealing with transaction value. The Rules provide for the determination of the correct price of goods that are imported in the country or exported out of the country uninfluenced by relationship between the transacting parties. 9. Transaction value, deductive value, ....
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....Customs Duty. The very fact that the earlier issue was being contested by them upto the Supreme Court level, shows that they carried Bonafide belief that the amounts paid to Voltas Ltd., are not includible in the Assessable Value for arriving at the Customs Duty component. Thus, it is a case of interpretation and not a case of attempt to evade Customs Duty payment. She prays for complete waiver of the Penalty imposed by the Adjudicating authority. 7. We have considered these pleadings and find that indeed that the appellant was contesting the issue till Supreme Court. Therefore, the submission that no malafides can be attributed to them, being a reputed Public Sector Undertaking also has weighed in our minds. However, we find that settin....