2015 (2) TMI 222 - AT - Customs

Determination of transaction value - Discounts - Held that - Authority has recorded that in case of series of imports the discount being fluctuating reasonable discount may be determinable within the above range, without a straight jacket formula. Commissioner (Appeals) has noticed that imports of appellant are subject to warranty condition which calls for higher rate of discount to be allowed. Further, the level of discount varies with the commercial quantity imported. Revenue has no material to controvert the findings of learned Commissioner (Appeals). In absence thereof to show that the relation of the parties has depressed import value, there is no scope to intervene to the order passed by that Authority. - Decided against Revenue.

Summary

The Appellate Tribunal CESTAT CHENNAI upheld the decision of the Commissioner (Appeals) allowing discounts of 25% to 43% on imports, based on discounts given to unrelated parties. The Tribunal noted that fluctuating reasonable discounts are permissible without a fixed formula, especially for imports subject to warranty conditions. The Revenue's appeal was dismissed due to lack of evidence to challenge the findings.