Order Date – 17 March 2023

Parties: Krishak Bharti Co Operative Limited Vs C.C.-Kandla

Facts – 

• The Appellant, Krishak Bharti Co Operative Limited, was alleged to be undervalued goods imported by them on the grounds that seller and buyer are related to each other and that their relationship had influenced the price of goods imported.

Issue –

• Whether the appellant is liable to pay the differential duty?

Order –

• The Tribunal held that the identical issue has been already decided in appellant’s own case by the Tribunal. It was held that “From the facts of the case it is also clear that none of the party involved in the present transactions controlled each other. Accordingly, based on the undisputed facts of this case the appellants and the GOI and OMIFCO are not related persons in terms of Rule 2 (2)(i), (iii) and (vi) of Customs Valuation Rules 2007. Since the charges of misdeclaration & undervaluation are not sustainable in law, the differential duty demand along with interest and penalties imposed is liable to be set aside.”
• Following the above order, the Tribunal set aside the impugned order and allowed the appeal.