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TMI Blog2003 (8) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... ied. 2. M/s. Thapar Dupont Ltd. (TDL) established a plant at Gummudipoondi, Tamil Nadu in the year 1997 for manufacture of tyre cord fabric from Nylon 66 yarn imported from Du Pont Singapore. It was originally planned as a joint venture in 1994 of Du Pont India Ltd., Ballarpur Industries Ltd. (BIL) and Mitsui of Japan under the name of TDL. In 1996 BIL moved out of the joint venture and Du Pont India Ltd. acquired 98% shares of TDL and the name of the company was changed to Du Pont Fibres Ltd. (DFL) from April, 1998. Later a decision was taken not to set up facility for manufacture of Nylon 66 yarn from basic raw materials and it was decided to manufacture tyre cord fabric from out of imported Nylon 66 yarn. Nylon 66 yarn with denier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-1-2000 at the same price at which the goods were sold to DFL. According to the appellant, the fact that the price remained the same even for sale to unrelated person, would prove that the relationship had not influenced the price before 1-1-2000. Under these circumstances, according to the appellant, the Department should have accepted the transaction value. It is also contended that no reason has been given by the authorities and as a matter of fact no finding is entered regarding the admissibility of transaction value. 5. It is the contention of the appellant that the provisions contained under Rule 6 of the Customs Valuation Rules, 1988 have not been correctly applied to the facts of the case by the authorities before enhancing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods imported by the appellant are Nylon 66 yarn of 840 denier to 1890 denier. It is contended that on the basis of Rule 2(1)(e) of Customs Valuation Rules 'similar goods' means imported goods which although not alike in all respects, have the characteristics and the component materials which enable them to perform the same functions and to be commercially interchangeable with the goods being valued having regard to the quality, reputation and the existence of trade mark. In the present case the appellant would submit that nylon filament yarn of lower denier is used in general applications like manufacture of sewing threads and is entirely different from the range of yarn imported for producing tyre cord fabric with denierage varying from 84 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt. In support of the above contention, they placed reliance on the decisions of this Tribunal in Modern Marketing Agencies v. CC, Hyderabad, 2002 (139) E.L.T. 399 and Garment Craft v. Commissioner, 1998 (99) E.L.T. 612. The learned Counsel pointed out that the decision of this Tribunal in Garment Craft v. Commissioner was affirmed by the Supreme Court in 2001 (130) E.L.T. A271, (S.C.). Reliance was also placed on CC, Chennai v. Hewlett Packard Ltd., 1999 (108) E.L.T. 221. It was also a case of import from related person and the Department's action for enhancing the value on the basis of small quantity of import made by another importer was not approved by the Tribunal on the ground that the levels, both commercial and quantity in the two i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Eicher Tractors v. CC, 2000 (122) E.L.T. 321 and Basant Industries v. Additional Collector of Customs, Bombay 1996 (81) E.L.T. 195 (S.C.). 10. The learned DR. submitted that in view of the relationship between the parties, the transaction value was correctly rejected and that the enhancement made is justified. 11. We find merit in the contention raised by the appellant. Even if the buyer and seller are related the transaction value has to be accepted in view of the provisions contained under Rule 4(3)(a) of Customs Valuation Rules provided that the relationship did not influence the price. Sub-rule (3)(b) proves that in a sale between related person transaction value shall be accepted whenever importer demonstrates that the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tement in his order that even if they are different products, nylon yarn of 840 to 1260 D should be treated as having higher value than nylon yarn of 210 D. He has come to the above conclusion only on the basis of the end-use for which they are put to. No other material is available in support of the above conclusion by the Commissioner (A). He has also not given any reason to reject the transaction value of the imports made by SRF, Viralimalai, Trichy during the relevant period as that of comparable goods. 12. In the light of the above discussion, we come to the conclusion that Revenue has not been able to justify rejection of the transaction value declared by the appellant and also enhancement of the transaction value at 5.80 US $ p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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