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Issues: Valuation of imported machinery - Deduction of commissioning and supervision charges from the assessable value.
In this case, the issue pertains to the valuation of imported machinery where the appellant imported a paint circulation system and declared a value lower than the invoice value by deducting commissioning and supervision charges. The lower authority rejected this deduction, stating that such charges are to be included in the assessable value as per Rule 9(e) of the Customs Valuation Rules. The Commissioner (A) upheld this decision, leading to the current appeal. The key contention revolves around whether the commissioning and supervision charges are a condition of sale and thus should be included in the assessable value. The Customs Valuation Rules under Rule 9(e) mandate the addition of payments made as a condition for the sale of imported goods if not included in the invoice value. However, in this case, the invoice itself includes the commissioning and supervision charges. The appellant argues for deduction on the basis that these charges are post-importation and not a condition of sale. The crucial determination lies in whether these charges are indeed a condition of sale, as indicated by their inclusion in the invoice value. The Commissioner (A) and the tribunal analyze the nature of the charges and the invoice presentation. Despite being separately shown, the inclusion of the commissioning and supervision charges in the invoice, along with insurance and freight paid on this amount, suggests that these charges are integral to the sale and thus form part of the assessable value. Citing precedents, it is established that charges related to the sale of goods are to be included in the assessable value. The tribunal concludes that the appellant's attempt to deduct the lb25000 for commissioning and supervision charges is unfounded, as these charges are deemed to be part of the sale value. The tribunal emphasizes the importance of adhering strictly to the invoice and purchase order details to determine the components of the sale value. Despite the appellant's argument that the charges are not part of the sale under Rule 9(e), the tribunal rejects this assertion, highlighting that the charges were clearly indicated in the invoice and were subject to insurance and freight payments. The tribunal clarifies that while post-manufacturing charges may not always be included, in this specific case, the lb25000 commissioning and supervision charges are deemed integral to the sale value. Consequently, the appeal for deduction is dismissed, affirming that the lb25000 forms part of the sale value and is not post-manufacturing charges.
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