9911796707
TMI Blog2019 (8) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... ue requires to be rejected and assessable value requires to be loaded by 7% in terms of Rule 8 of Customs Valuation Rules, 2007. Appeal filed by the Appellant was rejected by Commissioner Appeals vide Order dated 13.12.2012. 2. Learned Counsel for the Appellants submits that the foreign exporter nearly holds 39% stake in the Appellants; majority stake of 61% is held by Mahindra & Mahindra. Therefore, in terms of Rule 2(2) of custom Valuation Rules 2007, the Appellant and foreign supplier are not related. Learned Counsel further submits that the supplier has procured capital goods manufactured by M/s. Nittetsu Denji Techno Company Ltd Japan and supply to the Appellants including 1% margin; in terms of Rule 11 of Customs Valuation Rules 2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e agreement the importers and suppliers are partners in business; two employees of the suppliers, that is Metal One Corporation, are nominated as directors of MSSCL. Therefore, we find that as found by the original authority the foreign suppliers and the Appellants are related. 4.1 However, we find that the adjudicating authority and the Appellant authority have sought to load the value of imported goods at a flat 8% of profit margin. The original authority has stated to rely on Arcelor Mittal. However, no details have been furnished. As submitted by the Appellants we find that the goods dealt by Arcelor Mittal and the supplier of the Appellants are not same. Under the circumstances loading of 8% is arbitrary. It is on records that for one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, inspection etc. and thereafter supply to their various affiliated companies, including the appellant. Therefore, it is evident that the goods supplied to the appellant is not for making any profit. The lower authority has ordered for loading of 10% on notional basis which is purely based on the trade practice. We find that in terms of the Valuation Rules, notional profit element shall be added to the invoice price for arriving at the transaction value. Therefore, taking into consideration the above facts, we find that the loading of 10% profit margin on the invoice value appears to be on the higher side. We are of the considered view that since the appellant is a STPA unit and also taking into the fact that the imports made by the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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