Rejection of Transaction value - Undervaluation - Appellants had imported the concentrate Scotch whisky for dilution and sale and not for blending - Held that - The explanation given by the appellant for obtaining the lower price in respect of the supplies from the foreign supplier was convincing and there was no reason to reject the transaction price declared by them - The letter dated 27-10-2009 from the foreign supplier clearly indicated that the Scotch whisky supplied to the appellant was a blend of grain whisky and malt whisky and was suitable to be used for direct consumption after dilution with de-mineralised water - The foreign supplier in the said letter had also confirmed with respect to the difference in the price between the goods supplied to the appellant and other importers in India that each different blend had a different malt content and that the price charged will be dependent on the malt content - The foreign supplier had also in the said letter confirmed that the cost of malt whisky was higher than that for Grain Scotch Whisky - The submission of the foreign supplier was also confirmed by the literature available on the subject matter in the internet wherein it was stated that production of grain whisky was much easier and cheaper than distillation of malt whisky - Wikipedia also confirmed that Neutral spirits, near-neutral spirits and other fillers were usually much cheaper to produce than straight or single malt whisky, so blends containing them were usually much cheaper to buy. There was no evidence available on record to prove that the appellant had paid higher sum than what was declared in the import documents as also in the bank documents - the Revenue had completely failed to prove the charge of under-valuation in the case - EICHER TRACTORS LTD. Versus COMMISSIONER OF CUSTOMS, MUMBAI 2000 (11) TMI 139 - SUPREME COURT OF INDIA - merely because of the appellant obtained the higher discount from the foreign supplier that by itself cannot be a reason for rejection of the transaction value Order Set aside Decided in favour of Assessee............................... Customs - Case Law
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