TMI Blog1991 (12) TMI 174X X X X Extracts X X X X X X X X Extracts X X X X ..... ly the facts of the case are that M/s. Tata Iron Steel Company Ltd. had filed refund applications under Section 27 of the Customs Act, 1962 on the ground that the buying commission paid to their London Office should not be included in the assessable value under Section 14 of the Customs Act. It was contended before the Assistant Collector that as per Rule 9(1)(a)(i) of Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 buying commission is to be excluded from the transaction value. Against note to Rule 9, Buying Commission has been defined as fees paid by an importer to his agent for the services of representing abroad in the purchase of the goods being valued. In view of this position, it is urged that re-determin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction value denotes the value of imported goods actually paid or payable for the goods when sold for export to India subject to usual adjustment in accordance with the provision of Rule 9. As per Rule 9 of Customs Valuation (Determination of Price of Imported Goods) Amendment Rules, 1988, the Buying Commission would not be included when the same is not included in the price actually paid or payable for the imported goods. Collector (Appeals) observed that in the instant case the buying commission is included in the invoice price actually paid or payable by the importer. As such the contention of the appellants could not be accepted. The invoice supported by documentary evidence pertaining to repatriation amply proves that the invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Paper Book which relates to list of companies and in particular referred to serial number 24 which is the present appellants viz. Tata Iron Steel Co. Ltd. Shri Kapil Sibal, Learned Sr. Advocate referred to the extract from the Minutes of the meeting of the Board of Directors of the Tata Iron Steel Company Limited which appears on page 10 of the Paper Book which authorises the appointment of buying agent. He also referred to pages 14, 15 and 17 of the Paper Book. Page 15 relates to appointment as buying agents and page 17 relates to the permission of Reserve Bank of India by letter dated 10th July, 1991 and the relative appointment of buying agents is valid upto 31st March, 1994. The Learned Advocate pleaded that the supplier is Sie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstance where the Letter of Credit has been opened in favour of the buying agent. He also filed sample copy of the Letter of Credit and also stated that all the letters of credit are opened in the name of the suppliers and not in the name of buying agent. 5. We have heard both sides and gone into the facts and circumstances of the case. We have perused the Letter of Credit which has been opened. Sample copy of the same has been filed and the Letter of Credit is in the name of M/s. Pechinery Electrometallurgie, Tour Manhattan, Cedex 21, 92087 Paris La defense, France. This letter of credit is a sample as we were told that all the letters of credit are in the name of the supplier and not in the name of the buying agent. For proper appreciat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices rendered by them. A copy of the sample letter of credit has been filed before us and it is not disputed that the letters of credit are opened in case of the actual foreign buyers. The appointment of Tata Ltd., London and Tata Incorporated, New York has duly been approved by the Reserve Bank of India and the said letter appears on page 8 of the paper book. The value for the purposes of assessment has to be done in terms of provisions of sub-section (1) of Section 14 of the Customs Act, 1962. Sub-section (1) and sub-section (1A) of the Customs Act, 1962 lays down that subject to the provisions of sub-section (1), the price referred to in that sub-section in respect of imported goods shall be determined in accordance with the rules made i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 2 Wash. C.C. 155, Fed. Cas. No. 4,770. Invoice carries no necessary implication of ownership, but accompanies goods consigned to a factor for sale, as well as in the case of a purchaser; Relker v. Ins. Co., 4 Abb. App. Dec. (N.Y.) 76. See BILL OF LADING. Invoice Price, the prime cost, or invoice of the cost. Le Roy v. Ins. Co., 7 Johns (N.Y.) 343. An invoice is not evidence of a sale; it is a mere statement of the nature, quantity and cost or price of the things invoiced and is as appropriate to a bailment as to a sale; Dows v. Bank, 91 U.S. 618, 23 L. Ed. 214; In re Smith Nixon Piano Co., 149 Fed. 113.79 C.C.A. 53." It is a settled law that where there is no definition of a particular word in the Act, we have to resort to law dict ..... X X X X Extracts X X X X X X X X Extracts X X X X
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