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TMI Blog2014 (9) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... ion value for the purpose of Section 14 of the Customs Act. Rule 3(3)(b) of CVR 2007, also provides that suitable adjustments has to be made for the difference in transaction levels, quantity levels and relevant facts and the comparison made between the prices to a independent buyer and the prices to a related party where the related party acts as a dealer/distributor. This provision of law has been completely ignored by the lower authorities. - acting as indenting agent and earning commission from foreign suppliers for their sales to third parties are entitled to a lower price for supply and merely because a lower price is charged, it cannot be held that the transaction value can be rejected unless there is evidence of additional considera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the sale of the products of the foreign supplier in India by canvassing and indenting for the products. Further, the appellant is also precluded from selling or marketing products not manufactured by the foreign supplier. The agreement also provides for payment of overriding commission when the foreign supplier directly sells the goods to unrelated parties in India. If overriding commission paid is excluded from the sale price in respect of unrelated buyers, net sales realization by the foreign supplier would be the same irrespective of whether the sale is effected through the appellant or directly to the independent buyers. This clearly shows that relationship has not influenced the price. The learned Counsel relies to Rule 3 (3)(b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealization to the foreign supplier is exactly the same as in a transaction undertaken with the appellant. In spite of these evidences, where the appellant has demonstrated that the relationship has not influenced the price, both the authorities have not considered these submissions and have come to a conclusion, which are not based on the facts. Accordingly, the impugned order is incorrect in law. 2.1 The learned Counsel relies on the decision of this Tribunal in the case of Premnath Diesels Pvt. Ltd. v. CC, Calcutta - 2000 (122) E.L.T. 458 (Tribunal), CC, Chennai v. Hewlett Packard Ltd. - 1999 (108) E.L.T. 221 (Tribunal), Future Techno Designs (P) Ltd. v. CC, Chennai - 2006 (202) E.L.T. 443 (Tri.-Bang.) and Indo Ashahi Glass Co. Ltd. v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ponsibility on the appellant to promote the business of the foreign supplier in India which means he has to incur a cost on behalf of the foreign supplier. The agreement also provides for payment of over riding commission in case the goods are supplied directly by the foreign supplier to independent buyers within the territory of the distributor. If the over riding commission is excluded, then the sale price realized by the supplier in both the transactions remains more or less the same. The appellant has submitted before us the evidences of such transactions wherein, if the over riding commission is excluded, the realization by the foreign supplier in both the transactions remains more or less identical. These evidences submitted by the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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