TaxTMI 
TaxTMI 
2026 (7) TMI 476
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....d yarn, technical yarn semi-finished clutch facings since inception of the Appellant-company from M/s. Valeo Materriaux De Friction, France (M/s. Valeo, France-for short) and their associate companies. It appears that the issue of relationship between the Indian company and the Foreign suppliers and its influence on the transaction value were examined by Special Valuation Branch Custom House, Chennai in the year 2000. After thorough investigation, the Original Authority vide Order-in-Original No.1153/2000-SVB dated 14.12.2000 held that both the Indian Company and the Foreign Suppliers are related to each other in terms of Rule 2 (2) of Customs Valuation (Determination of price of Imported Goods) Rules, 1988 (CVR, 1988 for short) and ordered....
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....d their Appeal thereby upholding the demand of differential duty as confirmed in the Order-in-Original (supra), the Appellant appears to have preferred second Appeal before this forum. The Chennai Bench vide its Final Order No.40589/2024 dated 31.05.2024 as reported in 2024 (6) TMI 61-CESTAT Chennai has considered the issue in the context of the statutory provisions and the interpretation as drawn by various judicial Fora and thereafter held as under : "4. In Article 8 of the Agreement, it is clearly indicated that at the appellant's request, VALEO shall supply the parts and raw materials necessary to the manufacture of the products on the basis of the terms to be determined by the appellant and VALEO. All this indicate that paymen....
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....hority from 1999-2000 onwards to 2013-2014. There was no change as to computation of Net Sales value but its interpretation. The Audit team of appellant's accounts has pointed out that for computation of royalty, the cost of imported raw materials was to be added in terms of correct interpretation of the same agreement. The appellant have produced evidence that VALEO, France has waived additional royalty payable if the cost of raw materials were to be included in the Net Sales Value for period from 2000-2001 to 2011-2012. We find that the Department was well aware of the issue all along and the Appellants have provided all documents and clarifications and nothing prevented the Department from launching an investigation against the appellant....
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....filed detailed reply. The Adjudicating Authority-Commissioner Customs, Chennai-II having considered the reply, vide Order-in-Original No.47467/2016 dated 31.05.2016 however, confirmed the proposed demand along with applicable interest and penalty. It is against this order that the present Appeal has been filed before this forum. 5. Heard Shri S. Ganesh Aravindh, learned Advocate for the Appellant and Shri Sanjay Kakkar, learned Departmental Representative, we have carefully perused the documents placed on record, synopsis, written submissions including decisions / orders relied upon by both sides during the course of arguments. The main issue that arises for determination in this Appeal is :- "Whether the demand of differential ....