Directorate General of Valuation Central Board of Excise & Customs Government of India

CESTAT Order No. A/1080/2004-WZB/C-I, dt....

CESTAT Order No. A/1080/2004-WZB/C-I, dt. 09-06-2004

2004 (170) E.L.T.538 (Tri.- Mumbai)

IN THE CESTAT, WEST ZONAL BENCH, MUMBAI

Ms. Jyoti Balasundaram, Member (J) and Shri Moheb Ali M., Member (T) GOMACO (INDIA) LTD.

Versus
COMMISSIONER OF CUSTOMS (APPEALS), MUMBAI
Order No. A/1080/2004-WZB/C-I, dated 09-06-2004 in Appeal No.C/445/98-Mum.

Valuation (Customs) – Discount to Original equipment manufacturers – Special discount of 12% to original equipment manufacturers not admissible as deduction and required to be added to declared value for arriving at assessable value of goods imported- Rule 4 (2) (b) of Customs (Valuation) Rules,1988.- In terms of Rule 4(2) (b) the transaction value of imported goods can be rejected if their sale or price is subject to some condition or consideration for which a value cannot be determined in respect of the goods being valued. In the present case the price was subject to the condition that the goods were used by original equipment manufacturer. In other words the discount was available only if the goods were used by O.E. manufacturers. Hence the transaction value is rejected and 12% special discount is required to be added to the declared value for arriving at the assessable value of the goods imported by the appellants. (para3)

Appeal rejected.

REPRESENTED BY : None, for the Appellant.
Shri K.K. Srivastava, JDR, for the Respondent.

[Order per: Jyoti Balasundaram, Member(J)]. – The above appeal arises out of the order of the Commissioner of Customs (Appeals) who has held that special discount of 12% to original equipment manufacturers is not admissible as deduction under the Customs Valuation Rules and is required to be added to the value declared for the purpose of Customs valuation.

None appears for the appellants in spite of today’s date having been noted by the appellants representative; hence we heard ld. DR and perused the records.

In terms of Rule 4 (2) (b), the transaction value of imported goods can be rejected if their sale or price is subject to some condition or consideration for which a value cannot be determined in respect of the goods being valued. In the present case the price was subject to the condition that the goods were used by original equipment manufacturer. In order words the discount was available only if the goods were used by O.E. manufacturers. Hence the Commissioner (Appeals) has rightly rejected the transaction value and added the 12% special discount to the declared value for arriving at the assessable value of the goods imported by ther appellants value. We uphold the impugned order and reject the appeal.

Company Name and Address: 
GOMACO (INDIA) LTD. Vs COMMISSIONER OF CUSTOMS (APPEALS), MUMBAI