Home Case Index All Cases Customs Customs + AT Customs - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 360 - AT - CustomsValuation of imported goods - fashion apparel - related person in terms of Rule 2(2) of the Customs Valuation Rules, 2007 - includibility - Annual franchisee fee - institutional advertising and promotional campaign charges - advertising expenditure. Payment of Franchisee fee equal to @ 5% of the value of net purchases - Held that: - such franchisee fee is being paid by the appellant as a condition for the sale of goods by the foreign supplier. Such franchisee fee will be includible in the assessable value in terms of Rule 10 (1) (c) of the Customs Valuation Rules - demand upheld. Loading @ 2% towards share of institutional advertising and promotional campaign - Held that: - the appellant is required to remit an amount @ 2% and unless such amounts are paid, they will not be entitled to import goods from the foreign principal - such payments come within 10(1) (e), since such payments are being made as a condition of sale of the of the imported goods - demand upheld. Loading @ 3% of the value of purchase - Held that: - Such expenditure is incurred after import of the goods. Even though, the appellant is required to incur such expenditure as per the agreement with the foreign principal, it cannot be said that such expenditure has been incurred to satisfy the obligation of the foreign principal - the condition specified in Rule 10 (1) (e) is not satisfied - there is no justification to load the invoice value to this extent. Appeal allowed in part.
|