ORDER
K.K. Usha, J. (President)
1. This is an appeal at the instance of the importer challenging the order passed by the adjudicating authority rejecting the declared transaction value for the reason that the importer and exporter are ‘related persons’. The Commissioner has taken note of Clause (vi) under Rule 2(2) of the Customs Valuation Rules, 1988 which provides that when both parties are directly or indirectly controlled by a third person, they are deemed to be related.
2. The Commissioner comes to conclusion that in the facts of the case, Clause (vi) would apply. M/s. TCL Electronic (H.K) Ltd., Hongkong and M/s. Baron International Ltd., Mumbai had entered into a collaboration agreement on 2-5-2000 to form a joint venture company namely TCL Baron India Ltd. (hereinafter referred to as JVC). According to the Commissioner, TCL Electronic (H.K.) Ltd. with 51% equity controls JVC and JVC controls appellant/importer. Therefore, foreign supplier and Indian Importer are related persons within the ambit of Rule 2(2)(vi). He further observed that the relationship is corroborated by the minutes recorded on 31-5-2001 in the letter head of TCL Overseas Marketing Ltd. where the rates for JVC’s procurement from TCL Group companies are negotiated by TCL Electronic (H.K.) Ltd. and Baron International Ltd.
3. It is contended by ld. Counsel on behalf of the appellant that the Commissioner has erred in the factual finding that JVC Controls the appellant/importer. He submits that the appellant/importer is an independent company which has entered into an agreement with JVC. Apart from the above, it is in no way related to TCL Electronic (H.K) Ltd. or JVC.
4. Ld. DR appearing on behalf of the respondent was not in a position to place before us any material to support the finding of the Commissioner that JVC Controls the appellant/importer. On going through the relevant record also, we do not find any material relied on by the Commissioner for coming to the conclusion that JVC Controls the appellant/importer. We have gone through the minutes of the meeting, dated. 31-5-2001. It relates to an agreement between TCL Electronics (H.K) Ltd. and M/s. Baron International Ltd. in the matter of pricing of the goods to be exported to India. It cannot in any manner lead to the conclusion that the appellant is controlled by JVC.
5. In view of the above, we hold that rejection of transaction value declared by the appellant is without any justification. We, therefore, set aside the order impugned and allow the appeal.