Order Date – 13 January 2023

Parties: Sun Pharmaceuticals Industries Ltd Vs C.C.E. & S.T.-Surat-ii

Facts –

• The Appellant, Sun Pharmaceuticals Industries Ltd is a 100% EOU and cleared their excisable goods to their sister concern units on payment of duty as DTA sale.
• The appellant & their sister concern units & other related units were falling under the definition of related person as defined in sub rule 2 of Rule 2 of Customs Valuation Rules, 2007. It was found that the price of the clearance made to sister concern units & other related units appears to have influenced and the price was not the sole consideration in such transaction in as much as the difference in value was huge.

Issues – 

• Whether the sale made to sister concern is to be valued as per Rule 3 to 9 of Customs Valuation Rules?

Order – 

• The Tribunal find that neither the show cause notice issuing authority nor the adjudicating authority have given reasons to hold that how the relation has indeed affected the price. The declared prices cannot be reviewed without any evidence to the effect that the relation between the appellant and the related buyer which has influenced the declared price or to the effect that there was a flow back of money between the appellant and related buyers. 
• The Tribunal observed that difference in commercial levels, quantity levels was totally ignored by the Learned Commissioner. Further submission made by the appellants and judicial decisions relied upon by the appellant before him was not considered.
• Hence the appeal is allowed by way of remand.