Case Law Details
Krishak Bharti Co Operative Limited Vs C.C.-Kandla (CESTAT Ahmedabad)
CESTAT Ahmedabad held that review of declared price without any evidence, to the effect that relation has influenced the declared price or to the effect that there was flow back of money from importer to related supplier, is unsustainable in law.
Facts- The issue involved in the present case is that whether there is a relationship between Oman India Fertilizer Company LLC (OMIFCO) and Krishak Bharti Co Operative Limited (KRIBHCO), the appellant and Government of India and due to this alleged relationship whether the import price was influenced and consequently whether the appellant is liable to pay the differential duty.
Conclusion- In identical case, it is held that sub-clauses (i) to (viii) of Rule 2 (2) of CVR, 2007, indicate that each of the sub-clauses deals with different means of establishing deemed relationship between two persons. In terms of Rule 2(2)(i) persons can be deemed to be related only if they are officers or directors of one another’s business. In terms of Rule 2(2)(ii) persons can be deemed to be related only if they are legally recognized partners in business and terms of rule 2(2)(iv) persons can be deemed to be related only if both of them are directly or indirectly controlled by the third person.
Further, Rule 2 (2)(vi) of CVR, 2007 states that a person shall be deemed to be related only if both of them are directly or indirectly controlled by a third person. In the present matter revenue failed to show who is the third person who controls Appellants.
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