TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the commission received from the foreign supplier was liable to be added to the transaction value of the imported spares, and whether the importer and supplier were shown to be related persons with mutuality of interest so as to justify loading of value.
Analysis: The appellant imported goods from a foreign supplier and received commission for services connected with third-party imports. The lower authorities proceeded on the basis that the supplier and importer were related and that the commission amounted to a flow-back, but the record did not establish any concrete material showing mutuality of interest between them. The commission was found to be attributable to services rendered in India in respect of goods supplied to third parties, not to the appellant's own imports. The cited precedent on third-party commission and the requirement that value addition under the valuation rules must rest on legally sustainable grounds was applied to the facts.
Conclusion: The commission was not includible in the transaction value, and the loading of 22.66% was unsustainable. The appeal was allowed and the impugned order was set aside.
Ratio Decidendi: Commission received for services relating to third-party imports cannot be added to the assessable value of the importer's own goods unless the revenue establishes a legally relevant relationship and mutuality of interest justifying rejection or adjustment of the declared transaction value.
TaxTMI 
TaxTMI 
