9911796707
TMI Blog2007 (6) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1988. Vide his order dated 26-11-2005, the Additional Commissioner of Customs (Special Valuation Branch) found that the appellants had suppressed its relationship with Hans. In response to a questionnaire dated 21-4-2004 seeking information for ascertaining if the prices declared by HIL for its imports from the related suppliers had influenced the prices charged from the importer, the appellants furnished data relating to enzymes vide their letter dated 6-5-2004 and did not disclose the information relating to hair care products imported and traded by them. Despite communication seeking information as per Rule 10A of the CVR, complete data were not furnished. After hearing the assessee on 17-10-2005, the Additional Commissioner, Special V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 10A read with Rule 4 of the CVR. Details were called for relating to hair care products in order to determine the assessable value of these goods under Rule 7 of CVR. It was found that the appellants had not furnished the Profit and General Expenses for the goods of the same class or kind but had furnished such figures relating to goods under investigation. 3. The Additional Commissioner collected Profit and General Expenses relating to goods of the same class or kind from the Company Research Data Base of Economic Times in respect of 18 Indian companies doing similar business as Henkel India Ltd. He found the average Profit and General Expenses to be 38.64% of the price of goods sold by these companies. Applying this pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filing the material Bills of Entry. Appellants had not been afforded adequate opportunity to defend the proposal to reject the invoice value in terms of Rule 10A and also the proposal to revise the assessable value of hair care products in terms of Rule 7 of the CVR. Ld. Sr Counsel cited various case laws to substantiate the requirement of putting the appellants on notice as regards specific proposals. The proceedings were vitiated in the absence of proper notice to the appellants. 5. It was submitted that the Order-in-Original had relied on the Economic Times Date Base relating to 18 Companies, 14 of which did not manufacture any hair care products. Those 14 companies were in the business of manufacture and trading of other goods. Actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plier suggested that the appellants had been enjoying a favoured price compared to unrelated buyers. The royalty was found to be payable as a condition of sale of the goods. The appellants had submitted that until they received letter dated 10-11-2004 they had not known that the enquiry covered hair care products. The DR submitted that the questionnaire was elaborate and had left no room for doubt. EDD had not been shown as receivables in their Books of Accounts but was written off. In the impugned order the Commissioner found that the original authority had followed the sequential process of valuation after finding relationship between supplier and appellants. He had rightly applied Rule 7 of CVR. Invoice values were rejected as transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... principles of natural justice. Rule 10A provides for requiring the importer to furnish information necessary to justify the invoice price as transaction value. The Rule also provides that the assessing officer may reject the invoice value for the assessee s failure to furnish the information called for or for undue delay in furnishing the information. We find that MIL had made predeposit of 5% HDD for clearing each consignment of hair care products imported from Hans. Therefore it cannot be disputed that the impugned assessments had not been provisional. Therefore, we find that the Additional Commissioner s order finalizing the values for assessment is not barred by limitation as argued by HIL. In this case the appellants have a grievance t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not related to the seller in India. (b) In such determination, due allowance shall be made for the value added by processing and the deductions provided for in items (i) to (iii) of sub-Rule (1) of this Rule. In the instant case as rightly pointed out by the ld. Sr Counsel for the appellants, the original authority had relied on the information relating to transactions indigenous goods manufactured by Indian companies, whereas the Rule resorted to required that the proper officer referred to the sale price of the/Imported goods under assessment or similar or identical goods imported into India. The appellants had indicated that products of L OREAL of France imported into India were similar to the impugned goods imported by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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