1998 (11) TMI 163

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.... General Motors Corporation, U.S.A. (GMUSA) for manufacture of specified Diesel Engines and compatible Power shift transmissions. Under this, (a) 12 Diesel Engines, claimed to be prototypes; (b) CKD components etc., for Transmission and (c) spares were imported. Customs vide Order-in-Original loaded the invoice values as follows :- (a) Diesel Engines by 66½% : 100; (b) Components by Nil; and (c) Spares by 18% Impugned Order-in-Appeal upheld (a) and (b) but reduced (c) from 18% to 6.3%. 3. Heard Shri M.S. Kumaraswamy, learned Consultant for appellants and Shri Sankaravadivelu, learned JDR. 4. Learned Consultant submitted as follows :- (a) After initial imports of 12 Diesel Engines, trans....

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....es. Therefore, the relationship between appellants and GM USA did not affect the price there. However, values for Diesel Engines is at 331/3% less than `List Price', hence the relationship has affected the price. (ii) The import of spares with addition of 6.3% (as per Order-in-Appeal) is acceptable to Department. Importers, other than distributors, could import at distributors price + 18% Agency commission. This loading is therefore justified under Rule 3(a) of Customs Valuation Rules, 1963. (iii) As far as Diesel Engines are concerned, the importers have not produced any clear evidence that these are `distributor net' prices. Therefore, the loading is justified. 6. Learned Consultant submitted in counter that Engine....

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..... This principle has also been upheld by this very Tribunal Bench in the case of M/s. Hewlett Packard in Final Order No. 1328/98, dated 10-7-1998 as reported in 1998 (78) ECR 536 (Tribunal). In the cited case deductions were held available to the distributor/agent in India from the List Price and value of direct imports by few customers could not be used for his (agents) bulk imports. In the instant case, the same principle is involved, but its application is to the converse. Since appellants are not agents but direct importers of a few engines, therefore list price would apply to them. As there is no dispute of the difference between these two prices being 331/3%, therefore the value has been correctly enhanced to that of list price. 9.....