TMI Blog2024 (4) TMI 1019X X X X Extracts X X X X X X X X Extracts X X X X ..... he range of 25% to 40% of the normal sale price to all their customers located across the globe including the group companies/ affiliates. The importer has also demonstrated that even at the time that they were not in existence in India their parent company had allowed 25% discounts to buyers like NCC in India. The cash discount of 3% is allowed by the parent company if the subsidiary pays the import bills within the time. No cash discount was ever availed by the Appellant as the import payments could not be made to the suppliers within the time. The cost construction statement duly certified by the CA shows that on average the profit margin was around 16%. None of this was refuted through facts. The OIO also mentions that the learned Adjud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his statutory functions by ordering a fresh enquiry. Thus, we set aside the impugned order. The appeal succeeds and is disposed of accordingly. - SHRI P. DINESHA, MEMBER (JUDICIAL) AND SHRI M. AJIT KUMAR, MEMBER (TECHNICAL) Shri R.R. Padmanabhan, Consultant for the Appellant Shri R. Rajaraman, AC (AR) for the Respondent ORDER This appeal is against Order in Appeal No. 376/2014 dated 10.3.2014 passed by the Commissioner of Customs (Appeals), Chennai. 2. Brief facts of the case are that Paschal India manufactures and supplies modular panels of different sizes for use in the construction industry. Apart from private sector, the company is an approved vender for DRDO and BEL, having defence applications. They import the required raw material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the 2nd May 2008. Their parent company has a policy on discount in its dealings with both subsidiaries and third parties. The said policy is to allow discount of 25 to 40%, in addition cash discount of 3% is allowed if the subsidiary pays the import bills within time. In response to SVB s query whether any contemporaneous imports were available to any independent third parties in India, Paschal India cited the instances of import to M/s. NCC Ltd. before 2.5.2008. Invoices were submitted along with a Table showing discount percentage. But this was not acceptable to the SVB as these supplies were made when M/s Paschal India was not incorporated in India. Further the fact that discounts are available for all its subsidiaries across the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The same was not accepted nor any proper reason given. The lower authority went on to add the trade discount of 25% minus the cash discount of 3% to the value. The Learned Counsel stated that no cash discount was ever availed by the company as the import payments could not be made to the suppliers within time. He stated that the onus is on the department to prove that the declared price did not reflect the true transactional value, however it has not come up with any evidence to substantiate its stand. He referred to the following case laws in their favour: a. Protector Gamble Home Products Ltd. Vs. Commissioner of Customs, Chennai 2022 (144) ELT 704 (Tri. Chen.) b. Collector of Customs Vs. Blue Star Enterprises 1996 (81) ELT 287 c. Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of international trade is to offer discount at the range of 25% to 40% of the normal sale price to all their customers located across the globe including the group companies/ affiliates. The importer has also demonstrated that even at the time that they were not in existence in India their parent company had allowed 25% discounts to buyers like NCC in India. The cash discount of 3% is allowed by the parent company if the subsidiary pays the import bills within the time. No cash discount was ever availed by the Appellant as the import payments could not be made to the suppliers within the time. The cost construction statement duly certified by the CA shows that on average the profit margin was around 16%. None of this was refuted through fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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