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TMI Blog2016 (12) TMI 963X X X X Extracts X X X X X X X X Extracts X X X X ..... he Customs Valuation Rules, 1988 that when any person directly or indirectly holds/owns 5% or more of the shares of both the companies then such concerns will be treated as related persons - supplier and the importer are related persons. Method of valuation - Held that: - the valuation of the imported goods in the present proceedings should be done under Rule 7A of the Customs Valuation Rules, 1988 as both supplier and the importer are related persons. The appellant should furnish all the relevant data/cost of the imported goods to the Adjudicating authority, as prescribed under Rule 7A of the Customs Valuation Rules, 1988 read with the interpretative notes relied upon by the appellant. Needless to say that an opportunity of personal hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... luation Rules, 1988 and that there is no provision under the Customs Valuation Rules, 1988 to determine the value of the imported goods based on the similar goods manufactured by the appellant or any other manufacturer in India. Ld. Advocate also submitted that all the data regarding cost of production of the imported goods in Nepal, duly certified by a cost accountant was submitted before the adjudicating authority. It was argued on behalf of the appellant that these facts were brought to the notice of first appellate authority as per submissions recorded in para 4 of Order-in-Appeal dated 26/3/2004. That on the contrary first appellate authority in para 8 of Order-in-Appeal dated 26/3/2004 has given a finding that appellant was reluctant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case records. The issue involved in the present proceedings is whether appellant M/s. Concept Pharmaceuticals Ltd. (India) is related to Concept Pharmaceuticals Ltd., Nepal. The appellant is of the opinion that the supplier and the recipient of goods are not related persons. However, it is observed from the facts recorded in para 8.4 of Order-in-Original dated 15/7/2002 that Concept Pharmaceuticals Ltd. holds 20% and 7.13% shares in both the sister concerns situated in Nepal and India. Ld. Advocate could not clarify as to how in spite of holding of more than 5% shares both the parties should not be considered as a related persons under Rule 2 (2) (iv) of the Customs Valuation Rules, 1988. It is observed from the provisions of Rule 2 (2) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is to be based upon the commercial accounts of the producer, provided that such accounts are consistent with the generally accepted accounting principles applied in the country where the goods are produced. 3. The costg or value shall include the cost of elements specified in clauses (1) (a) (ii) and (1) (a) (iii) of rule 9. It shall also include the value, apportioned as appropriate under the provisions of the relevant note to rule 9, of any element specified in rule 9 (1) (b) which has been supplied directly or indirectly by the buyer for use in connection with the production of the imported goods. The value of the elements specified in rule 9 (1)(b)(iv) which are undertaken in India shall be included only to the extent that such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industry concerned. Such a situation might occur for example, where products have been forced to lower prices temporarily because of an unforeseeable drop in demand, or where they sell goods to complement a range of goods being produced in India and accept a low profit to maintain competitivity. Where the producer s own figures for profit and general expenses are not consistent with those usually reflected in sales of goods of the same class or kind as the goods being valued which are made by producers in the country of exportation for export to India, the amount for profit and general expenses may be based upon relevant information other than that supplied by or on behalf of the producer of the goods. 6. The general expenses refer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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