2000 (8) TMI 142

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..... es and stock them for retail sales to actual users. Over and above this activity they act as Indenting Agent of the goods manufactured by the abovesaid companies for third parties. In case goods are imported by third party, invoice is raised by the foreign principals adding commission. Commission so collected by the principals are passed on to the appellant by credit note. In certain transactions the principals realises distributors price from the actual users and direct them to pay the appellant commission in local currency. Commission so received by the appellant works out to be at the 6% of the invoiced amount shown in the sales to third parties. Coming to know of this type of transaction, Customs authorities proceeded to load the invoic .....

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..... voices anything else flowed from the appellant to the foreign manufacturers. Appellant was a dealer of goods for foreign manufacturers. As dealer appellant was getting goods at a lesser price. Appellant also acted as Indenting Agent for actual users in India. When they get the goods imported, the foreign seller realises a higher value. Out of that, commission is paid to the dealer. Payment of commission by foreign manufacturer to dealer in India cannot be treated as a flow back from the buyer to the seller. Payment of commission is by the seller to his dealer. Under no circumstance, commission paid by manufacturer to the dealer can be loaded to the invoice value of the goods purchased by dealer from the manufacturers. In the decision report .....

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..... ssion to the appellant in relation to the goods sold by them to third parties. The said payment of commission by foreign seller to the appellant herein in respect of other transactions with strangers will not, in any way, make the transaction between them not genuine. 4. In the decision reported in Mira Exports Pvt. Ltd. v. Collector of Customs - 1998 (98) E.L.T. 3 (S.C.), Their Lordships stated that ordinarily the Court should proceed on the basis that the apparent tenor of the agreements reflect the real state of affairs and what is to be examined is whether the Revenue has succeeded in showing that the apparent is not the real and that the price shown in the invoices does not reflect the true sale price. In the instant case, foreign su .....

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