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Issues:
Valuation of imported goods based on relationship between importer and exporter. Analysis: The case involves an appeal by the importer against the order of the adjudicating authority rejecting the declared transaction value due to the relationship between the importer and exporter being considered as 'related persons'. The Commissioner relied on Clause (vi) under Rule 2(2) of the Customs Valuation Rules, 1988, which states that when both parties are controlled by a third person, they are deemed related. The Commissioner found that TCL Electronic (H.K) Ltd. with majority equity controls a joint venture company, which in turn controls the appellant/importer, establishing a related person status as per the rule. The appellant contended that the Commissioner erred in finding that the joint venture company controls the appellant/importer, asserting that they are independent and not related to TCL Electronic (H.K) Ltd. or the joint venture company. The Departmental Representative (DR) representing the respondent failed to provide any material supporting the Commissioner's finding. Upon reviewing the record and minutes of the meeting, it was concluded that there was no evidence to suggest that the appellant is controlled by the joint venture company. The Tribunal held that the rejection of the declared transaction value by the appellant was unjustified as there was no basis for establishing a related person status between the importer and exporter. Consequently, the order was set aside, and the appeal was allowed.
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