2002 (3) TMI 124 - AT - Customs

Summary

Issues involved:
The issues involved in this case include rejection of transaction value under Customs Valuation Rules, determination of value under Rule 8, consideration of Rule 7A for valuation, application of Rule 6A, and the appeal against the order-in-appeal No. C. Cus. 62/01.

Summary:

Rejection of Transaction Value under Customs Valuation Rules:
The original authority rejected the appellant's prayer for accepting the transaction value under Rule 4(3)(a) of Customs Valuation Rules, citing the relationship between the importer and another company. The Commissioner (Appeals) modified the order but rejected the appellant's prayer for adopting the computed value under Rule 7A. The case was remanded for de novo consideration.

Application of Rule 6A and Rule 7A:
The appellants argued that Rule 6A allows for the adoption of Rule 7A if the transaction value is not accepted. The Commissioner (Appeals) was criticized for not remanding the case to assess under Rule 7. The appellants contended that the transaction value or the value under Rule 7A should be accepted.

Mutuality of Interest and Rejection of Transaction Value:
The Tribunal examined the evidence presented by the appellant, showing uniform pricing worldwide among affiliates. It was established that the transaction value should not be rejected solely based on the relationship between the parties. The Tribunal upheld the transaction value and directed the authorities to consider the evidence and follow the judgment in a similar case.

Decision and Remand:
The Tribunal set aside the impugned order and remanded the case to the original authorities with a direction to accept the appellant's prayer for assessing the goods based on the transaction value under Rule 4(3)(a) or computed value under Rule 7A. The authorities were instructed to follow the judgment in a similar case and provide the appellant with a full opportunity of hearing during the reassessment process. The appeal was allowed by way of remand.