2013 (8) TMI 857

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ed by the Commissioner of Sales (sic) Tax, Mumbai. 2. The Miscellaneous application is for filing the additional grounds and production of certain documents relating to the sales transaction undertaken by the appellant. This can be considered only at the time of final hearing of the appeal. The COD application is for condoning the delay of 26 days. The delay occurred due to fact that the appellant was directed to file separate appeals instead of a composite appeal which was filed in time. Considering the reason stated as satisfactory, the COD application is allowed. 3. The appellant herein is M/s State Trading Corporation of India Ltd. and they are engaged in trading of various commodities such as edible oils, petroleum products, gold....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....customers by adding a mark-up.  ii) The transaction is on principal to principal basis and is a simple trading transaction. Further, the mark-ups added by them on their purchase price is already subject to customs duty and hence, Service Tax is not to be leviable on transaction of trading as the transaction is one of sale and not of service.    iii) The ld. Counsel for the appellant relies on the Circular issued by CBE & C vide Circular no. 32/2004 dated 11.05.2004 wherein the Board has clarified as follows:-    Subject :- Customs Valuation Rules, 1988 - Determination of assessable value for goods sold on high seas - reg.    Representations have been received on the Ministry to clarify the mann....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cludable in the CIF value of imported goods. Therefore, it is clarified that the actual high-seas-sale-contract price paid by the last buyer would constitute the transaction value under Rule 4 of Customs Valuation Rules, 1988 and inclusion of commission on notional basis may not be appropriate. However, the responsibility to prove that the high-seas-sales-transaction constituted an international transfer of goods lies with the importer. The importer would be required to furnish the entire chain of documents, such as Original Invoice, high-seas-sales-contract, details of service charges/commission paid etc, to establish a link between the first international transfer of goods to the last transaction. In case of doubt regarding the truth or a....