1996 (12) TMI 48

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....o an agreement for the supply of technical know-how, documentation and the like. On the same day that entered into a second agreement which noted that the second party to the agreement, General Tyre International Company, had for many years been engaged and had acquired vast experience in the manufacture of tyres as well as the design, engineering and equipment of plants for the same. The agreement in Article 5 stated, so far as is relevant : OPTIONAL PROCUREMENT SERVICES : ATL shall have the option and right to call for the services5.1 of GENERAL for procurement of any one or more items or equipment, machinery, spares, accessories and raw materials required for the PLANT, which ATL may elect to purchase, and GENERAL shall arrange for....

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....) on the F.O.B. value of such imported equipment, machinery, and/or raw materials for which GENERAL has rendered procurement services to ATL against ATL specific written request.  The amount payable under Article 5.3 (c) shall he paid(d) against a quarterly consolidated invoice to be submitued by GENERAL after having taken into accounts such invoices of supplies (with two copies thereof) in respect of which dispatches have been completed by GENERAL and goods received and approved at ATL's PLANT. This payment shall be effected within ninety (90) days from the date of receipt of the consolidated invoices by ATL from GENERAL. 3.The Appellants procured through the instrumentality of General ten items of equipment. The same were clear....

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....le 8 of the Customs Valuation Rules and no other. That Rule provides for the determination of assessable value by best judgment. Such a determination cannot be arbitrary but should take all relevant factors into account. The commission payable or paid to M/s. General Tyre is not an irrelevant factor in any such determination. Nor is it seriously contested that the commission was disclosed at any stage of the proceedings before the assessment of the various imports to duty. We, therefore, find, in the circumstances, that the order of the Board is not correct. It is, therefore, set aside." 5.We find it difficult to appreciate the Tribunal's reasoning when it states that the assessable value of machinery made to specifications and not purch....