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TMI Blog2014 (6) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... officer in the instant case has been done in accordance with law and after appreciating the evidence available on record with regard to costing - The cost plus method takes into account raw materials cost, manufacturing cost, administrative and sales overhead, packing cost, dealer’s cost, overhead and profit based on annual forecast. Thus the price declared by the appellant based on cost plus method is also supported by the documentary evidence by way of original invoices and other related documents. Therefore, we do not find any infirmity in the order passed by the assessing authority in the matter - there is no allegation of any flow-back or payment of any additional consideration by the appellant to the foreign supplier. In the absence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d above the submissions already made before the matter reached the Tribunal initially. However, that alone is not sufficient to hold that the various arguments put for by the appellants were not required to be considered as it is only because the Tribunal has found that the submissions made by the importer were not considered by the authorities below, that the case was remanded. Therefore, it was incumbent upon the authorities below to reconsider the submissions made in the light of Rule 4(3)(a) (b) of the Customs Valuation Rules. Although the authorities were required to consider these submissions in accordance with the directions contained in the remand order of the Tribunal, we are pained to note that these submissions have not been ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price data supplied by the appellant. It was pointed out that as per the cost based method adopted by the appellant, the cost includes the cost of raw materials, the cost of manufacturing including packing, administrative and sales cost and other overheads and mark-up over the said cost. The appellant does not pay anything over and above this to the foreign supplier. Further, there is no agreement between the appellant and foreign supplier for any technical know-how and therefore, no adjustment is required to be made in the transaction value under Rule 9 of the Customs Valuation Rules, 1988. There is also no evidence led by the Revenue to show that the transaction value has been influenced by the relationship between the appellant and the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder Rule 5 of Customs Valuation Rules, 1988. 6.2 After ruling out the determination of value under Customs Valuation Rules, the assessing officer has considered the cost plus pricing adopted by the appellant to arrive at the transaction value and the assessing officer has given the findings as follows :- Importer also imports various types of machinery, raw materials, spares for own consumption from related companies. Here too, the importer has clearly demonstrated the fact that cost plus method has been adopted. This has been justified by the original purchase invoices of the related exporters. To name a few of the submissions, I would like to highlight the import of extruder from REHAU GmbH, Switzerland wherein the supplier ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity in the matter. 6.4 This Tribunal in the case of Procter Gamble (supra) held that merely because the importer and its supplier are both 100% subsidiaries of another foreign company, would not lead to rejection of transaction value when it is shown by evidence of contemporaneous supply made to subsidiaries of the foreign company in other countries that pricing has been uniform world-wide. Similarly in the case of Future Techno Designs (supra), this Tribunal decided that even though the importer is a subsidiary of foreign company, he cannot be said to be interested in business of foreign company and transaction value can be rejected only when there is mutuality of interest. Again in the case of Hazel Mercantile Ltd. (supra), this Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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