Contents:
CBEC issued Circular No. 979/03/2014-CX dated 15-01-2014 clarifying implementation of Supreme Court Decision in the case of Fiat India Limited.
Through this Circular CBEC Clarifies as under on Implementation of FIAT Ruling:
Facts of each case to be considered
- Fiat Ruling was rendered in a unique set of facts where the cars were sold at prices substantially lower than manufacturing cost for a continuous period of five years. Further, lower prices were adopted with the objective of market penetration.The Supreme Court has cited two instances where a manufacturer may sell goods at lower prices and yet the declared value can be accepted
(i) company switching over business and
(ii) where goods could not be sold within reasonable time]
