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Issues:
1. Valuation of imported machinery including discount offered by the seller. Analysis: The case involved a dispute regarding the valuation of a New Yeast Wrapping Machine imported from Germany by the appellants. The Deputy Commissioner of Customs enhanced the declared value by disallowing a 10% discount offered by the German seller. The Commissioner (Appeals) upheld this decision, citing the lack of evidence regarding the discount being available to all buyers. The Tribunal examined the negotiations between the parties and the evidence provided. It was noted that the discount was a result of negotiations between the parties and was not shown to be exclusive to the appellants. The Tribunal emphasized that discounts are a common commercial practice and should not be automatically added back to the transaction value unless there is evidence of non-arm's length transactions or extra commercial considerations. The Tribunal found no evidence to support the Department's claim that the discounted value was not the actual amount paid to the seller. Referring to the Customs Valuation Rules and the Customs Act, the Tribunal concluded that the transaction value between the parties should be accepted as the correct value for assessment. The Tribunal held that the Commissioner (Appeals) erred in disallowing the discount and enhancing the declared value. The impugned order was set aside, and the appeal was allowed with consequential relief as per law.
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