06 五月 2024

Valuation of exports – Amount paid by foreign buyer to overseas agent of Indian exporter is not includible

The CESTAT Hyderabad has set aside the Order-in-Original passed by Commissioner of Customs (Preventive) demanding customs duty on export of iron ore fines wherein the overseas buyer had directly paid commission to overseas agent of the Indian exporter.

The Revenue Department’s case was that this was an additional consideration for sale as this was to be paid by the exporter who in turn depressed the value of export goods.

Allowing the appeals, the Tribunal noted that in exports, unlike in imports, the commission paid cannot be added even if the same is paid by the exporter.

The Tribunal in Kutch Salt & Allied Industries Ltd. v. Commissioner also observed that none of the Rules 4 to 6 of the Customs Valuation (Determination of Value of Export Goods) Rules, 2007 provide for addition of an amount as additional consideration for sale.

Browse articles