Commissioner Of Customs New Delhi vs M/S Prodelin India (P) Ltd

The Supreme Court addressed the appeal by the Commissioner of Customs regarding the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, specifically Rules 2(2)(i) and 2(2)(iv). The Court held that while the relationship between M/s Prodelin India (P) Ltd. and M/s Prodelin Corporation U.S.A. constituted related persons, this alone does not justify an increase in the sale price for customs valuation. The Court upheld the CESTAT's decision to set aside the order of the Commissioner of Customs, emphasizing that the sourcing assistance clause does not apply when the supplier is a partner in the joint venture.