TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
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 service charges of Rs. 34 per MT received by the respondent from NTPC were includable in the assessable value of imported coal under Section 14 of the Customs Act, 1962, and whether the transaction was a high sea sale or one involving a canalizing agent.
Analysis: The agreement showed that the respondent imported coal on its own account and supplied it to NTPC on a principal-to-principal basis. There was no material to show that the respondent acted as a canalizing agent or that any part of the service charges was passed on to the overseas supplier. Under Section 14, as amended, the assessable value is the price actually paid or payable for the goods when sold for export to India, and the service charges received after importation for services rendered were not shown to form part of that value. The transaction was not a high sea sale, since the Bill of Entry was filed by the respondent and the goods were cleared by it before sale to NTPC.
Conclusion: The service charges were not includable in the assessable value, and the Revenue's contention regarding high sea sale and canalizing agency failed.
Ratio Decidendi: Post-import service charges received for services rendered on a principal-to-principal sale are not includable in assessable value unless there is evidence that they form part of the price actually paid or payable for the imported goods or were passed on to the overseas supplier.
TaxTMI 
