Page 217 - ELT_2nd_15th April 2020_Vol 372_Part

2020 ] RBT EXPORTS PVT. LTD. v. COMMISSIONER OF CUSTOMS (PORT), KOLKATA 263

(iii) they are employer and employee;
(iv) any person directly or indirectly owns, controls or holds five
per cent. or more of the outstanding voting stock or shares of
both of them;
(v) one of them directly or indirectly controls the other;
(vi) both of them are directly or indirectly controlled by a third
person;
(vii) together they directly or indirectly control a third person; or
(viii) they are members of the same family.
Explanation I. - The term “person” also includes legal persons.
Explanation II. - Persons who are associated in the business of one
another in that one is the sole agent or sole distributor or sole con-
cessionaire, howsoever described, of the other shall be deemed to be
related for the purpose of these rules, if they fall within the criteria
of this sub-rule.
3. Determination of the method of valuation. - (1) Subject to Rule 8, the
value of export goods shall be the transaction value.
(2) The transaction value shall be accepted even where the buyer and
seller are related, provided that the relationship has not influenced the
price.
(3) If the value cannot be determined under the provisions of sub-rule (1)
and sub-rule (2), the value shall be determined by proceeding sequen-
tially through Rules 4 to 6.
4. Determination of export value by comparison. - (1) The value of the ex-
port goods shall be based on the transaction value of goods of like kind and
quality exported at or about the same time to other buyers in the same des-
tination country of importation or in its absence another destination coun-
try of importation adjusted in accordance with the provisions of sub-rule
(2).
(2) In determining the value of export goods under sub-rule (1), the
proper officer shall make such adjustments as appear to him reasona-
ble, taking into consideration the relevant factors, including -
(i) difference in the dates of exportation,
(ii) difference in commercial levels and quantity levels,
(iii) difference in composition, quality and design between the
goods to be assessed and the goods with which they are being
compared,
(iv) difference in domestic freight and insurance charges depend-
ing on the place of exportation.
5. Computed value method. - If the value cannot be determined under
rule 4, it shall be based on a computed value, which shall include the
following :-
(a) cost of production, manufacture or processing of export
goods;
(b) charges, if any, for the design or brand;
(c) an amount towards profit.

EXCISE LAW TIMES  15th April 2020  233