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2000 (1) TMI 46 - SUPREME COURTWhether the service charges payable to Minerals and Metals Trading Corporation 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? Held that:- There is no relationship 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 its sale consideration, it does not include the same as "buying commission". Therefore, this contention of the appellant is rejected. Thus we should also take notice of the fact by virtue of the high seas sales through which the appellant purchased the raw asbestos from the MMTC, it has derived the benefit of avoiding the payment of sales tax on these goods. These facts are sufficient to reject the contention of the appellant raised on the basis of unreasonableness of the levy. Appeal dismissed.
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