Valuation (Customs) — Goods sold on high seas
F. No. 528/207/89-Cus. (RH) (ICD), dated 20-6-1990
Government of India
Ministry of Finance (Department of Revenue)
Central Board of Excise and Customs, New Delhi
Customs Valuation of goods sold on high seas Subject :
I am directed to refer to the Minutes of the Conference of
Collector of Customs held in Calcutta in December, 1988 and to say that the
question of valuation of goods sold at high seas before their importation was
again examined by the Board. It was observed that adopting the sale price at
High Seas for the purpose of Valuation is perfectly within the provisions of the
GATT Valuation Code. It was, accordingly decided that Board’s instructions F.
No.528/93/88-Cus. (TU) (ICD), dated 3-11-1988 on the subject are in order and do
not require any change.
2. Consequently Board’s instructions dated 16-9-1964
appearing in Vol. I Chapter-3, Part III page 197 in the Central appraising
Manual issued vide Board’s F. No.3/56/63-Cus. VI (copy enclosed for ready
reference) may be treated as withdrawn.
(Copy of Enclosure)
(A) (iii) Service charges payable to State Trading
Corporation
The question arose whether the ‘service charges’ incurred
by the sole agents (income cases by the State Trading Corporation of India Ltd.)
should be included under the head expenses referred to in Rule 5 of the Customs
Valuation Rules, 1963. The service charges payable to the State Trading
Corporation are charged from Sole agents/Sole Distributors with whom the State
Trading Corporation eventually place licences for import and are meant to cover
expenses incurred by the State Trading Corporation in calling for quotations
etc. The Board is accordingly of the view that the service charges cannot be
considered to be ‘expenses’ incurred by the importers in their capacity as Sole
Agents or by STC in similar capacity. Hence the Board agrees that the service
charges in the present case cannot be included under Rule 5(a) of the Valuation
Rules.
JUDICIAL ANALYSIS
C.B.E. & C. Circular No. 528/207/89-DUS., dated
20-6-90. - Plea of assessee that this Circular was rescined hence Revenue’s
assessment required to be set aside - Plea allowed. — Eternit Everest Ltd.
v. Collector — 2000 (122) E.L.T. 857 (Tri. - Del.).