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2023 (6) TMI 375 - AT - CustomsValuation - Additions of 2% Notional Commission on High Seas Sale - Purchased goods / Propane on High Seas Sale basis from various Public Sector undertaking like IOCL, BPCL, and HPCL. - Genuineness of the transactions price - failure of the appellant to produce the documents or not - HELD THAT:- The issue regarding addition of Notional Commission at the rate of2% of high Seas Sale price has been examined by Tribunal in the case of Indian Farmers Fertilizer Co-Operative Limited [2020 (2) TMI 1134 - CESTAT AHMEDABAD] where it was held that while there was scope for addition of notional charges in the assessable value under the unamended Section 14 of the Customs Act, but after the actual sale price concept was introduced in the year 2007 on the basis of GATT guidelines and Section 14 of the Customs Act was amended in 2007, any inclusion of notional charges seems to have lost its relevance and only actual cost incurred by the buyer is required to be considered. Thus, it is apparent that addition of 2% High Seas Sale on Notional Basis Cannot be sustained. Genuineness of the transactions price - failure of the appellant to produce the documents - HELD THAT:- The same has no merit. The documents that the Commissioner (appeals) has sought the invoice which is always produced at the time of filing of bill of entry. The agreement between the public sector undertaking and the appellant is also produced before the Commissioner (Appeals), therefore the objection raised by the learned AR cannot be sustained. Appeal allowed.
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