9911796707
TMI Blog1998 (11) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... iesel Engines and compatible Power shift transmissions. Under this, (a) 12 Diesel Engines, claimed to be prototypes; (b) CKD components etc., for Transmission and (c) spares were imported. Customs vide Order-in-Original loaded the invoice values as follows :- (a) Diesel Engines by 66 % : 100; (b) Components by Nil; and (c) Spares by 18% Impugned Order-in-Appeal upheld (a) and (b) but reduced (c) from 18% to 6.3%. 3. Heard Shri M.S. Kumaraswamy, learned Consultant for appellants and Shri Sankaravadivelu, learned JDR. 4. Learned Consultant submitted as follows :- (a) After initial imports of 12 Diesel Engines, transmission components and spares, the agreement was cancelled as project was not found commercially viable. Their Indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hence the relationship has affected the price. (ii) The import of spares with addition of 6.3% (as per Order-in-Appeal) is acceptable to Department. Importers, other than distributors, could import at distributors price + 18% Agency commission. This loading is therefore justified under Rule 3(a) of Customs Valuation Rules, 1963. (iii) As far as Diesel Engines are concerned, the importers have not produced any clear evidence that these are `distributor net prices. Therefore, the loading is justified. 6. Learned Consultant submitted in counter that Engines were `prototype supplied from `dead stock and not for sale, therefore, nature of imports being different, Customs Valuation Rules did not apply. 7. We have carefully considered t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions were held available to the distributor/agent in India from the List Price and value of direct imports by few customers could not be used for his (agents) bulk imports. In the instant case, the same principle is involved, but its application is to the converse. Since appellants are not agents but direct importers of a few engines, therefore list price would apply to them. As there is no dispute of the difference between these two prices being 331/3%, therefore the value has been correctly enhanced to that of list price. 9. We, therefore, do not see any merit in the appeal with regard, to the Diesel Engines which compels us to interfere with the Order impugned. 10. As regards the value of spares is concerned, the impugned order has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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