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TMI Blog2008 (3) TMI 523X X X X Extracts X X X X X X X X Extracts X X X X ..... r filament yarn from different overseas parties. As per agreement the buying agent was inter alia required to open L/C for procuring materials and to undertake other services in relation to procuring the materials. As per the agreement, they were eligible for buying commission which included documentation and service charges and there was a ceiling for the buying commission which was 12% of the value of the consignment. (b) Nine consignments were imported over a period of time with the said Singapore based party acting as buying agent. The appellant has entered into purchase agreements directly with the foreign suppliers. The invoices by the suppliers were in the name of the Singapore based buying agent with the appellant as the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid in similar circumstances which included charges towards documentation and guarantee were permitted to be excluded in arriving at the assessable value. 5. Learned Departmental Representative defended the order of the Commissioner (Appeals) and submitted that inasmuch as the appellant has collected only as documentation and service charges, the same cannot be treated as buying commission. Rule 9 of Customs Valuation Rules permits exclusion of only buying commissions and not all commissions. 6. We have carefully considered the submissions from both sides. 7.1 In the judgment relied by the appellant, The Hon ble Supreme Court has taken note of the nature of services rendered by General Tyre International Company as the agent to M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... L shall pay for the same including shipping, transportation charges and insurance premiums. CONDITIONS OF PROCUREMENT SERVICES : 5.3 General agrees to observe the following norms in respect of procurement services to be rendered under this Article. (c) For the obligations concerning optional procurement services referred to in this Article. ATL agrees to pay General, in U.S. $ three per cent (3%) on the F.O.B. value of such imported equipment, machinery, and /or raw materials for which General has rendered procurement services to ATL against ATL specific written request. (d) The amount payable under Article 5.3(c) shall he paid against a quarterly consolidated invoice to be submitted by general after having taken into accounts s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to the contrary. 9. Rule 9 of the Custom Valuation Rules clearly permits exclusion of buying commission and note to rule 9(l)(a)(i) also clarifies the term buying commission as fees paid by an importer to his agent for the service of representing him abroad in the purchase of the goods being valued . On going through the judgement of the Hon ble Supreme Court in the case of Apollo Tyres Ltd. (supra) we find that the facts of the present case are substantially the same as facts of the said case. Therefore, we hold that the amount of about 10% of the value paid by the appellant to the Singapore based party is in the nature of buying commission only. It appears to be a case of difference in nomenclature in describing the said commission ..... X X X X Extracts X X X X X X X X Extracts X X X X
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