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TMI Blog2001 (11) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of each other and that the prices are not the sole consideration. Therefore, it held that the valuation of the goods imported by the respondent herein from M/s. Rosemount Inc. USA will have to be done under Section 14(1)(b) of the Customs Act, 1962 read with the Customs Valuation Rules, 1963. The said authority refused to accept the CIF value of the goods imported by the respondent, consequently, it made an addition of 2.4 per cent over and above the CIF value shown by the respondent of the goods imported by it. As stated above, this was done on the basis that the two companies, named hereinabove, had the status of related persons. 2.An appeal filed against the said determination by the respondent herein before the Collecto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d allowed the appeal of the respondent. 4.It is contended on behalf of the appellant before us that M/s. Rosemount Inc. USA and M/s. Fisher Rosemount (India) Ltd., (the respondent herein) are related persons and have interest in the business of each other. Therefore, the valuating authority was justified in loading the declared value with extra 20%, more so because there was difference in the value of the goods exported by the American Company to Singapore and Australia on one hand and to the respondent on the other. It was also contended that the judgment of the Tribunal in the case of Maruti Udyog Ltd. (supra) was wrongly relied upon by the Tribunal, hence, the order under appeal is liable to be set aside. 5.The applicability of Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Maruti is a separate commercial transaction governed by the Licence Agreement and Suzuki charges a price for it. That does not create an interest of Maruti in the business of Suzuki, Japan." 7.Based on the above finding, the Tribunal in that case had held that in the absence of any other material, it is not correct to load the import price. It also held in that case that no evidence had been led before it to show that even the payment of royalty induced any extra commercial reduction in the import price. This judgment of the Tribunal has since been accepted by this Court in the case of Collector of Customs, Bombay v. Maruti Udyog Ltd., Gurgaon [1989 (22) ECR 482 (S.C.)]. Though by a brief judgment, this Court held that after examining th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out that it is quite evident from the material on record that the CIF value of the goods imported by the respondent did not include the freight as could be seen from the documents available on record like the CIF value of the goods supplied by the said American Company to the other buyers at Australia and Singapore, hence, the authorities were justified in loading the cost declared by the respondent with 20% addition. Per contra, it is pointed out to us by Shri Joseph Vellapally, learned Senior Counsel for the respondent, that assuming it is so even then the value of the goods imported by the respondent was much higher than the value of the goods supplied by the American Company to the purchasers at Australia and Singapore. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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