ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 27.05.2025
CESTAT Bangalore Quashes SVB Valuation and Royalty Loading on Imports
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore Bench allowed the appeal filed by M/s Chem Rend Chemicals Co. Pvt. Ltd., quashing the 100% loading of invoice value and rejection of declared transaction value on imports from its parent company, Chem Trend, USA. The Tribunal also set aside the addition of royalty under Rule 10(1)(c) of the Customs Valuation Rules, 2007.
Background of the Case
- Appellant: Chem Rend Chemicals Co. Pvt. Ltd., Bangalore
- Imported Goods: Industrial mould release agents and dye lubricants
- Supplier: Related party โ Chem Trend, USA
- DRI/Customs Allegation: Declared value not at armโs length; addition of royalty payments to assessable value
- SVB Order: 100% value loading and inclusion of royalty under Rule 10(1)(c)
- Commissioner (Appeals) Decision: Set aside loading and royalty, but upheld rejection of declared value and remanded case for redetermination
- CESTAT Appeal: Against partial rejection of declared value and remand for redetermination
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Bangalore
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