2000 (1) TMI 46

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....r : Santosh Hegde, J.]. - The only question that arises for our consideration in these appeals is whether the service charges payable to Minerals and Metals Trading Corporation (for short 'the MMTC') by the appellant for the importation of raw asbestos made by them, is includible in the assessable value of import as provided in the Customs Act and Customs Valuation (Determination of Price) Rules, 1988 or not. 2.The appellant is a manufacturer of asbestos cement products for which it uses raw asbestos which is mainly imported from foreign countries. Under the provisions of the Import and Export Policy of the Government of India, the MMTC is designated as a canalising agent for the said purpose. The MMTC imports the raw asbestos in bulk pu....

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....C and that the service charges collected by the latter cannot be equated with the commission that is payable to an agent. The stand of the respondent Union further is that these goods of which MMTC was the owner were sold to the appellant on a high seas sale basis for consideration which included apart from the cost paid by the MMTC to its foreign seller the service charges payable to it. 6.The undisputed facts which are to be noticed for the purpose of disposal of these appeals are as follows : To cater to the needs of the users of raw asbestos, the MMTC calls for global tender and after identifying foreign supplier it purchases the raw asbestos in bulk which is sold in high seas sales to various users of raw asbestos for which the MMTC....

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....lationship of principal and agent between the appellant and the MMTC nor is there any agreement between the parties to pay "buying commission" nor has the MMTC agreed with the appellant to represent it abroad in the purchase of raw asbestos. Material on record, on the contrary, shows that the MMTC on its own goes through the process of identifying the foreign supplier from whom it purchases the goods in question on its own without representing any particular buyer in India and sells the same to the purchaser on high seas sales basis to the Indian buyers like the appellant. Purchase by MMTC from the foreign seller and subsequent sale by it to the Indian buyers are independent of each other. Therefore, MMTC when it includes service charges in....