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TMI Blog1998 (7) TMI 273X X X X Extracts X X X X X X X X Extracts X X X X ..... e machinery developed by Lema. Following clauses in the agreement which are of relevance are reproduced : "5.1 : BORASARA MACHINES shall manufacture the machines and parts and assemble the machines from the parts and components in strict accordance with the technical information and specifications supplied by LEMA and to the same standard of quality and workmanship as are maintained by LEMA. In no event shall BORASARA MACHINES change the design, specification, materials or other characteristics of the machines, parts or components. 6.1 : BORASARA MACHINES shall display in conspicuous place on all machines assembled in accordance with the terms of this agreement and on all catalogues, price lists, advertisements and similar documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o parties were not related and found no basis for enhancing the value. Hence this appeal by the department. 3. The contention in the appeal that importer is required by manufacture the machines and parts in accordance with the technical information and specification supplied by it and obtaining of raw components, in accordance with such specifications, and displaying on machines a statement that goods are manufactured under licence from LEMA constitutes control over the appellant by LEMA, is not acceptable. Sub-rule (2) of Rule 2 which specifies the condition on fulfilment of which persons shall be deemed to be related persons in clause (v) to one of them directly or indirectly controlling the other. The Interpretative Rules explain t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercising control in terms of Rule 2(5) [Verma Trafag Instruments P. Ltd. v. C.C. - 1993 (67) E.L.T. 861]. The position would obviously be the same in this case. In fact, the extent of involvement of the foreign supplier in that case was more significant than it is in the present case. In this case unlike the other we are concerned with the design and quality specification of the final product and not any other terms. It would therefore, clearly follow that the appellant was not subject to legal or operational control by LEMA and hence not related. 5. Departmental representative's contention that independently of whether the two persons were related the notice sought to arrive at the value by applying the principles behind provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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