Case Law Details
Metal Powder Company Ltd. Vs Commissioner of Customs (CESTAT Chennai)
Introduction: The case of Metal Powder Company Ltd. Vs Commissioner of Customs at CESTAT Chennai involves the enhancement of the declared value of imported aluminium powder, leading to an increase in customs duty. The Department re-determined the value due to perceived undervaluation, and because the foreign supplier was a related party to the appellant. The CESTAT Chennai has directed the matter to be reconsidered.
Analysis:
1. Enhanced Value: The appellant imported aluminium powder and declared certain costs. The Department increased the value per Kg, leading to a five-fold increase in the duty, which the appellant paid under protest.
2. Related Party Transaction: The foreign supplier being a subsidiary of the appellant led to suspicions that the transaction might not have been conducted at arm’s length, further complicating the assessment.
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