9911796707
TMI Blog2000 (8) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and supporting the caterpillar equipment by supply of imported spare parts to actual users. Investigation Circular No. 53/86, dated 8-4-1986 was issued by Special Valuation Branch of the Custom House directing provisional assessment of the goods imported by GMMCO from Caterpillar Far East Ltd. with 20% extra duty deposit pending finalisation of the assessment. Adjudicating authority after an elaborate investigation loaded the value of the goods imported by GMMCO by 8.3% to the value shown in the invoice for the purpose of assessment to duty. GMMCO took up the matter in appeal. Importer s contention was that their transaction with the foreign supplier was purely on principal to principal basis and no extra commercial consideration influen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Civil Appeal Nos. 7025-7026/94. Before the Supreme Court additional documents were produced by M/s. GMMCO in support of their contention that they were not sole distributors of the parts manufactured by Caterpillar. Those additional documents were accepted in evidence. Thereupon their Lordships remanded the matter to this Tribunal after setting aside the previous order for fresh decision taking into consideration the additional evidence as also documents which may be filed by the Revenue. 3. We heard the learned Counsel representing GMMCO and the learned Departmental Representative. We perused the entire documents including the fresh documents filed before the Supreme Court. We are disposing of the appeals. 4. M/s. GMMCO entered into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... illar. They do not import and stock parts in wholesale. Sales to them is at high price, price more than that fixed for dealers. Commission on the price of goods imported by actual user is given to GMMCO, dealers of Caterpillar. Price at which these goods are purchased by ONGC and other Public Sector Undertakings has been taken by the authorities below as actual price of the goods imported by GMMCO as well. This was done on account of the fact that GMMCO gets commission on the sales to these Public Sector Undertakings from Caterpillar. 6. As stated earlier, adjudicating authority loaded the value shown in the invoices by 8.3%. This addition was upheld by the Collector (Appeals) by observing - "Another connected question that arises is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f goods, according to this section, shall be deemed to be the price at which the goods are ordinarily sold or offered for sale for delivery at the time and place of importation in the course of international trade, where the seller and the buyer has no interest in the business of each other and the price is the sole consideration for the sale or offer for sale. From this it appears that where seller and buyer have no interest in the business of each other and the price is the sole consideration for the sale, that price has to be taken as price at which such goods are ordinarily sold. Appellant, GMMCO, is a dealer appointed by Caterpillar. Some of terms of the agreement entered into between them are taken for finding that they together contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch other. In terms of section 14 of the Customs Act, in the absence of interest in the business of each other, namely, between seller and the buyer, relationship cannot be found. In the absence of such mutuality and consequential relationship, transaction price cannot be stated to have been influenced. Caterpillar is selling goods to their dealers worldwide as per price list published by them. No favoured treatment is found in the transactions entered into between Caterpillar and GMMCO. In relation to the sales effected to actual users, which is at the higher value, Caterpillar pays commission to GMMCO. Commission so received by GMMCO cannot be treated as an additional consideration flowing from the buyer to the seller. Actually commission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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