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TMI Blog1989 (1) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... ents for sale. 2. The Assistant Collector of Customs, Special Valuation Branch of the Bombay Custom House accepted the invoice value so far as components of Microscopes were concerned. In respect of microscopes and other equipments for sale, however, he ordered that the appellant s import invoice shall be loaded in the ratio 70:100 for the purpose of Customs duty. These orders were upheld by the Colleclor of Customs (Appeals) Bombay. Appellants have, therefore, now come up in appeal before us. 3. We have heard Shri V.K. Varshneya, partner, for the appellants and Shri S. Krishnamurthy, SDR, for the department. 4. The substance of appellant s contention is that they are entitled to assessment under Section 14(1) (a) of the Customs Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers. This agreement imposes on the agents the responsibility to contact customers in India and to promote sales of the supplier s products. A total of 30% sole agency and indenting commission is agreed upon between the parties, which includes expenses for advertisement, office expenses, service after sale etc. 9. There were no direct sales to other parties in India. 10. It also appears from information supplied that elsewhere also, the suppliers have exported only to their distributors, dealers and traders. The commission to them ranged from 28% to 30%. 11. Before becoming sole selling agents, appellants also were getting a discount of 28% in the ordinary course of business. 12. In these circumstances, the question arises as to whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this has to be done under Section 14(1)(b), which provides that if price is not ascertainable as per Section 14(1)(a), then the value of such goods shall be deemed to be the nearest ascertainable equivalent thereof determined in accordance with the rules in that behalf. Now, what do the rules say? As per Rule 3(a) of Customs (Valuation) Rules, 1963, the first recourse is to valuation on the basis of the value at which such goods or comparable goods are sold or offered for sale to other buyers in India under competitive conditions. If this is not possible, then the value may be based on the export price of the suppliers to buyers in countries outside India under competitive conditions. If this is also not possible, then valuation can be bas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms (Appeals). The reason for this view is stated to be that the sole selling agency has remained on paper only. The fact that sole selling agent, after conclusion of the agreement, has not been able to obtain any orders does not affect his identity as a sole selling agent. Nor is there any justification for rushing into conclusion that the agreement is only a cover for deliberate reduction in valuation. 17. We, therefore, hold that appellants are entitled to valuation of their goods in terms of Rule 5 of the Customs (Valuation) Rules, 1963. 18. In ascertaining this value, we see no justification for denying the appellants the trade discounts on the printed price lists, which are available to all importers. In the course of internationa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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