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TMI Blog2024 (10) TMI 1359X X X X Extracts X X X X X X X X Extracts X X X X ..... by the related persons. Both the foreign supplier and the importer-respondent must be having published pricelists for sale of various components being manufactured by them, which were not examined at all. Thus, it is not disputed that the Original Authority has clearly violated the principles of natural justice by not intimating the grounds on the basis of which enhancement of the values of the imported products was resorted too. As the issue of arriving at appropriate values in terms of CVR, 2007, requires further detailed examination clearly the Original Authority should have examined the values of all the items under import with those values of identical or similar items imported by the independent buyers from the same supplier or other identical or similar contemporaneous imports. The Lower Appellate Authority has also without examining the issue in detail has simply ordered to set aside the order of the Original Authority leaving a vacuum as to the values to be adopted for the imported goods by the related importer-respondent. The case is to be remanded to the Lower Original Authority for considering the issue afresh in strict observance of the principles of the natural justi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , filed an appeal before the first appellate authority who vide the impugned Order-in-Appeal No. 746/2014 dated 01.05.2014 held that the values arrived at by the department was not in accordance with the manner set out in CVR and allowed the appeal of the respondent. Aggrieved, the Appellant-Department has preferred the present appeal before this forum on the following grounds: - (i) In Para 8 of the Order-in-Original, the Lower Adjudicating Authority has compared the value of 22 items imported by the Appellant with the declared values of an independent buyer (M/s. Vestas) imported from the same supplier. These details were provided by the Appellant himself to the Lower Adjudicating Authority who has decided the percentage of variation on the basis of mean average of these items. The following details which were submitted by the appellant before the Appellate Authority are to be noted : - (a) Impugned order merely considers two invoices relating to supplies to Vestas. Impugned order refers to 22 items whereas there are over 100 items imported. (b) Components to Vestas are not the only imports. There are other customers who buy various components from appellants. The products vary f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uyers resulting in significant revenue loss. Therefore, it was prayed to set aside the impugned order and remand the matter to the lower authority for fresh consideration. 4. Shri S. Murugappan, the Ld. Counsel for the Respondent-importer has submitted that the Department had arrived at an enhanced value by merely comparing the prices of only a few items imported while ignoring the values of many other items. It was submitted that the Respondent has filed costing statements with the SVB Section, Custom House, Chennai, but, the Original Authority has failed to consider the above information and only two invoices relating to supplies to M/s. Vestas were considered for enhancing the value. When there were more than 100 items imported, reference was made only to 22 items to enhance the value, across the board. It was also submitted that components supplied to M/s. Vestas, were not the only imports and there were many other customers in India who were buying various components from the foreign supplier. The Original Authority has also not considered the volume of imports done by the Respondent which were very high as compared to the imports by M/s. Vestas. He placed reliance on the rati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nship did not influence the price. (b) 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 one of the following values ascertained at or about the same time. (i) the transaction value of identical goods, or of similar goods, in sales to unrelated buyers in India; (ii) the deductive value for identical goods or similar goods; (iii) the computed value for identical goods or similar goods: Provided that in applying the values used for comparison, due account shall be taken of demonstrated difference in commercial levels, quantity levels, adjustments in accordance with the provisions of rule 10 and cost incurred by the seller in sales in which he and the buyer are not related; (c) substitute values shall not be established under the provisions of clause (b) of this sub-rule. 9. It is seen that the Lower Authority has merely considered two invoices relating to the supplies made to M/s. Vestas. When the imported goods were running into more than 100 items, a reference was made only to 22 items. Whatever the inputs information submitted by the Respondent wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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