9911796707
TMI Blog1996 (12) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... As the agreement provides by which General was appointed the purchasing agent of the appellants in respect of such items of equipment for the tyre plant that the appellants opted to purchase through the agency of General. The provisions under it make it clear that the appellants would see the quotations submitted to General by the various suppliers and would approve the same. They provide that the purchases from the suppliers would be made by the appellants. They provide that what the appellants would pay to General was a commission or remuneration to be computed on the basis of 3% of the value of each of the items of equipment. These provisions show beyond any doubt that the value of the items of equipment was not enhanced thereby. We, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations and for rendering of all the related services, including inspection at the supplier's manufacturing site, furnishing for such supply of all necessary documentation, guarantees, data and manuals relating to and customarily supplied with, for installing, testing, operating and maintaining such aquipment and machinery and the details as to the needs and procurement of spare parts and accessories therefor. Prior to placing of any firm order for purchasing any equipment, machinery, spares, accessories, or raw materials, GENERAL shall obtain quotations from responsible qualified suppliers thereof and shall submit quotations and GENERAL's recommendations to ATL for final approval and authorization to place such orders but no orders shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e value. Thereafter a notice was served upon the appellants asking them to show cause why the assessable value of these items of equipment should not be recomputed and enhanced so as to add to the invoice values thereof the procurement charges thereof, that is to say, to add 3% of the F.O.B. value of each item of equipment. The show cause notice was confirmed. The appellants appeal to the Central Board succeeded, and therefrom the Revenue went in appeal to the Tribunal. 4.Paragraph 4 of the Tribunal's order records its reasons for setting aside the order under appeal before it. It reads thus : "On merits, we observe that the goods (various items of machinery) but manufactured against specific orders. (Counsel's letter dated 20-7-1979 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ermined by the best judgment method and no other. The Tribunal, apparently, failed to take notice of the fact that this was not a case where the invoices produced by the appellant had been rejected or, indeed, the agreement aforementioned. It was the case of the Revenue that to the value mentioned in those invoice 3% should be added by reason of the terms of the agreement. A best judgment assessment, therefore, was not called for and had not been made. 6.Now, the agreement provides that the appellant shall have the option and right to call for the services of General for the procurement of items of equipment required for the tyre plant and for rendering services related thereto. It provides that in the case of items of equipment which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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