SRF LTD. Vs. CCE

JUDGEMENT

(1.) IN this appeal at the instance of the importer challenge is against the order passed by the Commissioner (Appeals) dated 31.1.2003. The issue that has to be considered is wither enhancement of the declared value of Nylon 66 yarn to US 5.8 Kg. in terms of Rule 6 of Customs Valuation Rules, 1988, is justified.

(2.) M /s . Thapar Dupont Ltd. (TDL) established a plant at Gummudipoondi, Tamil Nadu in the year 1997 for manufacture of tyre cord fabric from Nylon 66 yard imported from Du Pont Singapore. It was originally planned as a joint venture in 1994 of Du Point India Ltd., Ballarpur Industries Ltd. (BIL) and Mitsui of Japan under the name of TDL. In 1996 BIL moved out of the joint venture and Du Point India Ltd. acquired 98% shares of TDL and the name of the company was changed to Du Pont Fibres Ltd. (DFL) from April 1998. Later a decision was taken not to set up facility for manufacture of Nylon 66 yarn from basic raw materials and it was decided to manufacture tyre cord fabric from out of imported Nylon 66 yarn.

(3.) NYLON 66 yard with denier varying from 840D to 1890 D, (840 D 1260 D 1680 D and 1890 D) was imported from Du Pont Singapore for use in the manufacture of tyre cord fabric by TDL/DFL/Tyre cord Fabric Ltd. During the period October 1997 to January 2001 import were made at prices ranging from US 2.35 per Kg to US 3.19 per Kg. Du Pont India Ltd. Sold its hare holdings in TDL to M/s . SRF Ltd. w.e.f. 1.1.2001. The name of the company was then changed as M/s . Tyre cord Fabrics Ltd. (TFL) a wholly owned subsidiary of SRF Ltd. Later w.e.f. 1.1.2001 M/s . TFL was merged with SRF.