M/S APPOLLO TYRES LTD. versus THE COLLECTOR OF CUSTOMS AND ANR.

M/S APPOLLO TYRES LTD. versus THE COLLECTOR OF CUSTOMS AND ANR.

Procurement charges paid to the purchasing agent, which are service charges for procurement and not value enhancing, are not includible in the assessable value of the goods as per the agreement and the facts of the case. The Tribunal erred in applying the best judgment method under Rule 8 without rejecting the invoice or agreement values.

Parties
Appellant: Apollo Tyres Ltd.; Respondents: The Collector of Customs and Anr.
Jurisdiction
India
Judgment Date
10 December 1996
Procedural Posture
Civil Appeal / Supreme Court on Appeal From Cegat; Order of Central Board of Excise and Customs Restored
Outcome
Appeal allowed; Tribunal's order set aside; order of Central Board of Excise and Customs restored; no order as to costs.
Legal Topics
Customs Valuation, Inclusion of Procurement Charges in Assessable Value
Customs Law Customs Valuation Inclusion of Procurement Charges in Assessable Value

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Parties

Apollo Tyres Ltd.

Appellant

The Collector of Customs and Anr.

Respondents

Procedural Posture

Civil Appeal / Supreme Court on Appeal From Cegat; Order of Central Board of Excise and Customs Restored

Legal Issues

  1. 1 Whether procurement/service charges paid to a purchase agent for imported equipment are includible in the assessable value for customs duty purposes

Ratio Decidendi

Procurement charges paid to the purchasing agent, which are service charges for procurement and not value enhancing, are not includible in the assessable value of the goods as per the agreement and the facts of the case. The Tribunal erred in applying the best judgment method under Rule 8 without rejecting the invoice or agreement values.

Court Disposition

Appeal allowed; Tribunal's order set aside; order of Central Board of Excise and Customs restored; no order as to costs.

Orders

  • Order of Central Board of Excise and Customs restored
  • No order as to costs