Operational compensation linked to minimum purchase obligations was treated as part of goods price, limiting full pre-deposit waiver.

An operational compensation amount under a supply agreement was treated as prima facie part of the price of the goods because the buyer had to lift a minimum quantity and, if it failed to do so, pay compensation to cover the shortfall in agreed sales turnover. The arrangement was linked directly to the supplier's assured minimum return on equity and the sale of finished goods, rather than to a payment independent of the sale. On that basis, the material supported denial of total waiver of pre-deposit.

---

---

Issues: Whether the amount described as operational compensation received under the supply agreement formed part of the price of the goods and, on a prima facie view, justified denial of complete waiver of pre-deposit.

Analysis: The agreement showed that the buyer was required to lift a minimum quantity of finished goods so that the supplier would achieve an assured minimum return on equity. If the minimum quantity was not lifted, the buyer had to pay operational compensation to make good the shortfall in the agreed sales turnover. On that basis, the amount was treated as having a direct connection with the sale price of the goods and not as a payment unconnected with the sale.

Conclusion: The operational compensation was prima facie part of the price of the goods, and the appellant was not entitled to total waiver of pre-deposit.

---