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Issues involved: Appeal against Commissioner (Appeals) order dated 30-12-2004 regarding exclusion of buying commission from assessable value.
Facts: Appellant engaged a Singapore-based buying agent for procuring nylon and polyester filament yarn. Payments made to the agent included documentation and service charges. Original authority demanded duty and imposed penalty for not providing a breakup of buying commission. Appellant's Argument: Buying agent only provided buying services, including documentation and guarantee. Relies on Supreme Court decision allowing exclusion of similar commissions in assessable value. Department's Argument: Amount collected as documentation and service charges cannot be treated as buying commission under Rule 9 of Customs Valuation Rules. Court's Analysis: Examined documents and found the Singapore agent's role to be that of a buying agent only. Rule 9 permits exclusion of buying commission, defined as fees paid to an agent for representing the importer in purchasing goods. Citing Supreme Court precedent, held that the amount paid to the agent was akin to buying commission and should be excluded from assessable value. Judgment: Appeal allowed, and relief granted in accordance with the law.
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