Case Law Details
Indian Farmers Fertilizers Co Operative Limited Vs C.C (CESTAT Ahmedabad)
CESTAT Ahmedabad held that rejection of transaction value is unjustified as department has failed to produce any evidence reflecting that the relationship between the parties has influenced the price.
Facts-
M/s IFFCO and M/s KRIBHCO both are a Multistate Co-operative Society primarily engaged in manufacturing of Fertilizers and distribution of fertilizers. On the basis of intelligence gathered by the Department of Revenue Intelligence (DRI), the imports of Urea by M/s IFFCO and M/s KRIBHCO were taken up for analysis and it was revealed that while the prevailing import price of Urea is around US $ 410 Per MT, Both the appellants are importing Urea from M/s Oman India Fertiliser Company, Oman (in short OMIFCO) at about US $ 160 per MT.
DRI initiated investigation into the imports made by the both assessee during the course of which, it recorded statements of some employees of the assessee. After completing the investigation show cause notices were issued to proposing inter-alia to reject the declared value of imported goods and also to re-determine the same.
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