Fiat Case - No Amendment to Law
IN Commissioner of Central Excise vs Fiat India pvt Ltd - , the Supreme Court had held that if the goods are sold below the cost price, that price is not the transaction value and value had to be determined. The review petition filed by the party was dismissed. [].
Even the Government knows that this was not their intention in bringing in the concept of ‘transaction value'. There is a strong demand to amend the law to undo the Supreme Court verdict, if not retrospectively, at least prospectively. All the Government experts on valuation are convinced that the issue needs to be legislatively clarified - but there is a view at the top that a beneficial order to Revenue from the Apex Court, even if it is against their own view, should not be thrown out. So, most probably there would be no amendment to the Law. We will have to wait till the Supreme Court is convinced that this order needs a review.