TMI Blog2013 (8) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... [2012 (2) TMI 319 - CESTAT, MUMBAI] - From perusal of the import documents as well as invoices it was evident that the transaction was one of trading or sale - The mark-up/trade margin charged by the appellant was also subject to customs duty as part of the transaction value - there was no reason why the same part of the transaction value should be taken out of the customs transaction and subjected to Service Tax under the guise of Business Auxiliary Services - The Board's Circular dated 11.05.2004 also clarified that the customs duty liability was to be discharged on the value inclusive of trade margin in the case of High Seas Sales transaction - pre-deposit of the dues was waived adjudged against the appellant and stay recovery thereof du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmodities such as edible oils, petroleum products, gold, silver, groceries etc. The appellant undertakes import as well as export of these items on behalf of various traders/merchants. In case of an import transaction, they undertake the imports by placing order on the foreign suppliers, opening LC and the goods are purchased on their own account and when the goods arrive in India, they sell these goods to the customers on High Seas Sale basis and they charge a mark-up ranging from 1% to 1.5% of the value of the goods. The documents for import of the items are filed by the respective customers, who declare the value inclusive of the mark-up for the purposes of customs duty assessment. The Revenue was of the view that the applicants are rend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manner of determining the value of imported goods imported on high-sea-sales basis. As per the existing practice in Mumbai Custom House, the "high-seas-sales-charges" are added to the declared CIF value in terms of Public Notice No.145/2002, dated 3.12.2002. Such "high-seas-sales-charges" are taken to be 2% of the CIF value as a general practice. In case the actual high-sea-sale contract price is more than "the CIF value plus 2%", then the "actual contract price" paid by the last buyer is being taken as the value for the purpose of assessment. In some of the custom houses, however, audit has raised objection stating that if, in a particular transaction, there were about three/four high-sea-sales, then high-sea-sales service charges @ 2% has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r accuracy of the declared value, the Department may reject the declared transaction value and follow the sequential methods of valuation under Customs Valuation Rules, 1988. From the above Circular, it can be seen that the transaction is one of import and their trade margin is included in the taxable value for the purposes of assessment of customs duty. iv) The Ld. Counsel also relies on the decision of the Tribunal in the case of Indian Oil Co. Ltd. vide order no. S/108/2012/CSTB/C-I dated 6.1.2012 where in a similar situation, it was held that transaction is one of the Sale and Service Tax liability is not attracted and accordingly waiver from pre-deposit of the dues adjudged was granted. Therefore, he pleads for grant of stay. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
