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Issues: Whether service charges paid to the canalising agent for import of raw asbestos were includible in the assessable value of imports, and whether such charges could be excluded as buying commission.
Analysis: The goods were imported in bulk by the canalising agent and resold to Indian buyers on a high seas sale basis. There was no principal-agent relationship between the importer and the canalising agent, nor any agreement that the latter would represent the importer abroad in the purchase of goods. The service charges were part of the consideration for the independent sale by the canalising agent and did not answer the description of buying commission within Rule 9(1)(a)(i). The plea that the duty burden was heavy did not provide a legal basis to exclude the charges from valuation.
Conclusion: The service charges were includible in the assessable value and were not deductible as buying commission; the challenge failed.
Final Conclusion: The appeals were rejected and the valuation adopted by the customs authorities was upheld.
Ratio Decidendi: Amounts paid to an independent seller-canalising agent as part of the sale consideration for imported goods are includible in assessable value unless they are shown to be genuine buying commission paid to an agent representing the importer abroad.
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