D.K. Jain, J. - (1.) These two appeals under Section 130E of the Customs Act, 1962 (for short "the Act") by the importer (hereinafter referred to as "the appellant") (C.A. No. 5840 of 2008) as well as by the revenue (C.A. No. 1110 of 2009) arise from the final order dated 25th June 2008, passed by the Customs, Excise and Service Tax Appellate Tribunal, Principal Bench, New Delhi (for short "the Tribunal"), in Custom Appeal No. 559 of 2006. By the impugned order, while upholding the decision of the Commissioner of Customs in determining the value of the "Concentrate of Alcoholic Beverages" ("CAB" for short), imported by the appellant, under Rule 6 of the Customs Valuation (Determination of Prices of Imported Goods) Rules, 1988 (for short "the 1988 Rules"), the Tribunal has directed the jurisdictional Commissioner to redetermine the customs duty liability of the appellant after making certain adjustments in the manner indicated in the order.
(2.) As both the appeals call in question the same order, these are being disposed of by this common order.
(3.) The case has had a chequered history and, therefore, in order to appreciate the controversy, it would be necessary to narrate the facts in detail. The appellant (formerly named and styled as Seagrams India Pvt. Ltd.) is a wholly-owned subsidiary of the Seagram Company Ltd., Canada, established for manufacturing/blending of non-molasses based spirits. The appellant imported CAB from M/s Joseph E Seagram and Sons Ltd., Scotland, a wholly-owned subsidiary of Seagram Company Ltd., Canada. The strength of CAB imported was about 60%. It is not in dispute that the appellant is a "related person" to the supplier and this fact was disclosed to the Customs Authorities. The import of CAB was of four varieties, each one meant for manufacturing four brands of scotch whiskies, namely "100 Pipers", "Passport", "Something Special" and "International Malts" (Royal Stag; Oaken Glow; Blenders Pride and Imperial Blue). The import of CAB was in wooden barrels and their value was declared separately for assessment. The appellant diluted the imported CAB by adding demineralised water and reduced the strength to 42.8% v/v; packed them in bottles under respective brands; paid State excise duty and sold these to the dealers for ultimate sales to the consumers.;