SUPREME COURT OF INDIA

Before:- S.P. Bharucha, R.C. Lahoti and N. Santosh Hegde, JJ.

Civil Appeal No. 2511 of 1992. D/d. 2.12.1999.

Collector of Customs, Kandla - Appellant

Versus

East African Traders - Respondent

Customs Act, 1962, Section 14 - Customs Valuation (Determination of Price of Imported Goods) Rules 1988, Rule 2 - Valuation of goods - Determination of relationship between the buyer and the seller - This is being governed by Rule 2(2) of Customs Valuation Rules - Law therefor laid down in the judgement of Supreme Court in (1998)3 SCC 681 - Permissible for authorities and Tribunal to pierce the veil of assesse company whether buyer and seller are indeed related persons.

[Para 1]

Cases Referred :-

Calcutta Chromotype Ltd. v. Collector of Central Excise, Calcutta, (1998)3 SCC 681.

JUDGMENT

The learned Attorney General, appearing for the appellant, has restricted his argument to the observations of the Tribunal in the order under appeal relating to the piercing of the veil of the respondent company to determine whether or not the buyer and the seller were related persons, this being governed by Rule 2, sub-rule (2) of the Customs Valuation Rules, 1988. The law that would apply is that laid down in the judgment of this Court in Calcutta Chromotype Ltd. v. Collector of Central Excise, Calcutta, (1998)3 SCC 681. It is permissible for the authorities and the Tribunal to pierce the veil in given facts and circumstances to ascertain whether the buyer and the seller are indeed related persons within the meaning of the said sub-rule.

2. The civil appeal is, therefore, disposed of.

3. No order as to costs.

Order accordingly.