9911796707
TMI Blog1998 (4) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... the Indian indenting agents through whom the importers placed orders for the machines with the Czechoslovakia supplier M/s. Kovo Foreign Trade Corporation. The facts of the case in these appeals are similar. The two importer-appellants filed Bills of Entry (B/E) on 3-6-1991 for which the CIF value as per invoice was Rs. 8,95,578/-. An amount of Rs. 44,778/- was declared by the importers in the B/E as Local Agency Commission paid to appellants Mahabeer Co. Copy of the orders placed by them with Mahabeer Co. were also submitted according to which the importers were to pay an amount of Rs. 1,79,115/- to Mahabeer Co. towards their commission and installation technical advice. As per the break up given in the order out of this amount Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not confiscated as unauthorised import and for misdeclaration of value under Sections 111(d) and 111(m) of Customs Act. The Commissioner of Customs thereafter passed the impugned orders holding that the entire 20% CIF payment by importers to Mahabeer Co. is includible in the assessable value of the goods under Section 14(1) Customs Act read with Rule 9(1)(a)(i) of Customs Valuation Rules, 1988. As the import licence produced did not have value balance to cover the enhanced assessable value, the goods were held liable for confiscation under Section 111(d) Customs Act as also under Section 111(m) of the Act for mis-declaration of value. As the goods had been released provisionally an amount of Rs. 70,000/- was ordered to be adjusted against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... invoice price payable to the supplier, they will be required to pay an amount equal to 20% of the value of the machine locally to them towards their commission and installation charges, and that this amount will have to be paid in advance at the time of placing the order itself, which after further discussion was agreed to be made by way of Bank Guarantee. The importers were also informed that this 20% amount was to be compulsorily paid to them if they want to import the machine and that if they do not agree to the 20% amount to them, they will not sell the machine to them at all. They had no option to get the machine installed on their own and it was compulsory to obtain the services of Mahabeer Co. for this purpose. Thus it is clear th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase decided by the Tribunal in Alln Graphics v. CC, Bombay - 1997 (90) E.L.T. 432 (Tribunal) = 1997 (71) ECR 160 relied upon by the ld. Consultant for the appellants. On the other hand, in the Tribunal decision in the case of Ranking Press and M/s. Repro in Combined Order Nos. 3474-3475/96-A referred to therein, the Tribunal observed that since the commission and other charges were being shown as Commission in the accounts of Mahabeer Co. the claim that this amount was divisible among commission, installation charges, and technical advice was not maintainable. The ratio of this decision squarely applies to the present case. 4. Therefore, it is held that the determination of assessable value in these cases as ordered by the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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