Case Law Details
Pernod Ricard India Private Limited Vs The Union of India through Joint Secretary (Bombay High Court)
Bombay High Court held that insisting on bank guarantees for differential duty justifiable based on finding of SVB (Special Valuation Branch) that petitioner is undervaluing its import from related party.
Facts- The Petitioner has challenged the direction issued by Respondent No.3 to the Petitioner on the ICEGATE Portal demanding bank guarantee for differential duty on of bills of entry for imports of the Petitioner of concentrates of alcoholic beverages from 1 April 2022 onwards.
The Petitioner is a private limited company. The Petitioner manufactures, blends and sells Indian made foreign liquor. Respondent No.1 is the Union of India. Respondent No.2 is the Central Board of Indirect Taxes and Customs. Respondent No.3 is the Principal Commissioner of Customs (Nhava Sheva). Respondent No.4 is Joint Commissioner of Customs. Respondent No.5 is the Deputy Commissioner of Customs, and Respondent No.6 is the Principal Commissioner of Customs, Noida, UP.
It is mainly alleged that the petitioner and M/s. Chivas Brothers Limited, UK are related party in terms of Rule 2(2)(iv) and 2(2)(vi) of the Customs Valuation Rules, 2007. It was observed that the Petitioner and M/s.Chivas Brothers are fully owned subsidiaries of Pernard Ricard, S.A. It was observed that the declared prices are liable for rejection under Rule 12 of the Rules of 2007 and are to be re-determined.
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