Commissioning and supervision charges in the invoice were treated as part of sale price and included in assessable value.

Commissioning and supervision charges separately shown in the invoice for imported machinery were held includible in assessable value because they formed part of the sale transaction and a condition of sale under Rule 9(e) of the Customs Valuation Rules. The fact that the amount was described separately did not make it deductible where the invoice and purchase order showed it as part of the agreed price, and freight and insurance were also paid on that amount. The deduction claim was rejected, and the valuation adopted by the lower authorities was sustained.

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Issues: Whether commissioning and supervision charges shown separately in the invoice for imported machinery were liable to be included in the assessable value as part of the condition of sale, or could be deducted as post-importation charges.

Analysis: Rule 9(e) of the Customs Valuation Rules contemplates addition of payments made or to be made as a condition of sale where such amounts are not already included in the price actually paid or payable. On the facts, the disputed amount was expressly shown in the invoice itself, and freight and insurance were also paid on that amount. The form of the invoice and purchase order indicated that the charge formed part of the sale price. The mere description of the item as commissioning and supervision charges did not justify its exclusion from valuation.

Conclusion: The disputed amount formed part of the sale and was includible in the assessable value. The deduction claim was rejected.

Final Conclusion: The appeal failed and the valuation adopted by the lower authorities was sustained.

Ratio Decidendi: Amounts expressly included in the invoice and shown to be part of the sale transaction are includible in the assessable value, even if described separately as commissioning or supervision charges, where they constitute a condition of sale.

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