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TMI Blog2014 (12) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... s that the importer gets 34% profit and this profit margin is abnormal for aluminium industry. We find that sub-clause (b) of sub-rule (3) of Rule 4 of Valuation Rules provide that in a sale between related persons, the transaction value shall be accepted, whenever the importer demonstrates that the declared value of the goods being valued, closely approximates to values ascertained at or about the same time. We find that the appellant had not placed any material to establish that the relationship had not influenced the price. Such as, international price list to show that discount is to all the buyers. They have only produced a price list generated in their own system. Discount is a general practice in the trade. On a perusal of the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Norsk Hydro b.v., Holland - 50.5% It was found that the supplier is a subsidiary of M/s. Norsk Hydro, Holland has more than 5% shares. In the present case, the supplier had given 40% discount to the appellant-company. The adjudicating authority held that as per Rule 2(2)(v) of Customs Valuation Rules, 1988, the appellant-company and M/s. Hydro Aluminium Systems s.p.a. Italy are related. The invoice value was loaded by 40% as per Rule 8 of the Valuation Rules and finalized the provisional assessment accordingly. The appellant filed appeal before Commissioner (Appeals), who upheld the order of the lower authority. The Tribunal by final order dated 4-9-2002 set aside the impugned orders and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriously disputing the fact that buyers and sellers are related. In this context, Rule 4(3)(a) of Valuation Rules, 1988 provides that where seller and buyer are related, the transaction value shall be accepted provided the examination of the circumstances of the sale of the imported goods indicate that relationship did not influence the price. In the present case, on perusal of the adjudication order, it is seen that on verification of import invoices and bills of entry and local invoices that the importer gets 34% profit and this profit margin is abnormal for aluminium industry. We find that sub-clause (b) of sub-rule (3) of Rule 4 of Valuation Rules provide that in a sale between related persons, the transaction value shall be accepted, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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