2008 (3) TMI 523

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....te. Ltd., Singapore engaging them as their buying agent to procure nylon filament yarn and polyester filament yarn from different overseas parties. As per agreement the buying agent was inter alia required to open L/C for procuring materials and to undertake other services in relation to procuring the materials. As per the agreement, they were eligible for buying commission which included documentation and service charges and there was a ceiling for the buying commission which was 12% of the value of the consignment. (b)     Nine consignments were imported over a period of time with the said Singapore based party acting as buying agent. The appellant has entered into purchase agreements directly with the foreign suppl....

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....es on the decision of the Hon'ble Supreme Court in the case of Apollo Tyres Ltd., v. Collector of Customs reported in 1997 (89) E.L.T. 7 (S.C.) wherein commission paid in similar circumstances which included charges towards documentation and guarantee were permitted to be excluded in arriving at the assessable value. 5. Learned Departmental Representative defended the order of the Commissioner (Appeals) and submitted that inasmuch as the appellant has collected only as documentation and service charges, the same cannot be treated as buying commission. Rule 9 of Customs Valuation Rules permits exclusion of only buying commissions and not all commissions. 6. We have carefully considered the submissions from both sides. 7.1&....

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....lly agreed in any given transaction, all equipment, machinery, spares, accessories, and raw materials purchased by General. In pursuance of Article 5.1 for ATL, shall be purchased by General directly in the name of ATL and ATL shall pay for the same including shipping, transportation charges and insurance premiums. CONDITIONS OF PROCUREMENT SERVICES : 5.3     General agrees to observe the following norms in respect of procurement services to be rendered under this Article. (c) For the obligations concerning optional procurement services referred to in this Article. ATL agrees to pay General, in U.S. $ three per cent (3%) on the F.O.B. value of such imported equipment, machinery, and /or raw materials for wh....