JOHNSON CONTROLS PVT. LTD. Vs. CC AIR CARGO

JUDGEMENT

(1.) In this appeal at the instance of the importer -assessee grievance is that neither the Deputy Commissioner of Customs, Special Valuation Branch (SVB), Delhi nor the Commissioner of Customs (Appeals) has considered the appellants' case on merits. It is also contended that in the light of the directive given in Board's Circular No. 1/98 dated 1.1.98 followed by Circular No. 11/2001 dated 23.3.2001 the Commissioner (Appeals) should have followed the view taken by the Deputy Commissioner, SVB, Mumbai in his order dt. 11.1.2000

(2.) The appellants are engaged in the business of undertaking projects for high quality building automation systems, automatic temperature controls, fire alarm systems and security and access control for office etc. They have their registered office in Mumbai with branches at New Delhi, Calcutta, Hyderabad and Bangalore. The appellants are a wholly owned subsidiary of M/s. Johnson Controls International B.V. Netherlands (JCIBV). JCIBV is a subsidiary of Johnson Controls Inc. United States of America (JCT). Johnson Controls (Singapore) P. Ltd. (JC Singapore) another' group entity, which provides logistics support to the appellants.

(3.) The appellants procure finished goods from JC Singapore which in turn procures the same from various Johnson Controls factories worldwide as well as other vendors. At times, the appellants imported directly from third party vendors. JC Singapore invoices the appellants on the basis of the standard Branch transfer price list, which is applicable to Johnson Control units Worldwide. JC Singapore adds to the Branch transfer price list - - freight @ 9% to 20%, packing and forwarding charges @ 5% to arrive at the invoice price. The appellants have a Sole Concessionaire Agreement with JC Singapore under which it procures orders from Indian customers and executes the same on behalf of JC Singapore on which the appellants receive a commission of 2% of the free on board (FOB) value. The appellants commenced operations in India at around July 1996. Its registered office was shifted from New Delhi to Mumbai in August 1997