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TMI Blog2014 (12) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... for application of the said clause is that the payment should have been made as a condition of sale of the goods imported. There is nothing in the two agreements stipulating such a condition. While the service agreement is for rendering of certain management consultancy services, the secondment agreement is for deputation of staff. These have nothing to do with the import of raw materials. There is also no restriction placed on the appellant that the raw materials should be procured only from the related foreign entity and from nobodyelse. In the absence of any nexus, even remotely, between these two agreements and the import of raw materials, we do not find any justification whatsoever to relate the payments made for the services received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resources, legal and tax consulting, ecology risk management, accounting/reporting, IT, sales marketing support, business development strategy, management support, govt. relations, auditing, merger and acquisition and procurement and supply chain. For such services rendered, the appellant was required to remit certain fixed sums on monthly basis. The consideration paid was related to the capital and personnel employed. Similarly, the agreement with Pechiney Plastic Packaging was for deputation of staff on secondment basis for which the appellant paid emoluments to the staff deputed. These payments made had nothing to do with the import of raw materials nor was the services received a condition of sale for the imported goods. However, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as being one for customs purposes with the goods in question; (iii) the cost of packing whether for labour or materials; (b) The value, apportioned as appropriate, of the following goods and services where supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale for export of imported goods, to the extent that such value has not been included in the price actually paid or payable, namely:- (i) materials, components, parts and similar items incorporated in the imported goods; (ii) tools, dies, moulds and similar items used in the production of the imported goods; (iii) materials consumed in the production of the impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant. The crucial factor for application of the said clause is that the payment should have been made as a condition of sale of the goods imported. There is nothing in the two agreements stipulating such a condition. While the service agreement is for rendering of certain management consultancy services, the secondment agreement is for deputation of staff. These have nothing to do with the import of raw materials. There is also no restriction placed on the appellant that the raw materials should be procured only from the related foreign entity and from nobodyelse. In the absence of any nexus, even remotely, between these two agreements and the import of raw materials, we do not find any justification whatsoever to relate the payments mad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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