“Customs Duty on Imported Goods: SC Upholds Inclusion of Agent Fees in Assessable Value”
The Supreme Court upheld the inclusion of engineering and technical service fees (8% of FOB value) paid to a local agent in the assessable value of imported goods under Rule 9(1)(e) of the Customs Valuation Rules, 1988. The Court ruled that such payments, being a condition of sale and linked to pre-importation services, were integral to the transaction value under Section 14 of the Customs Act, 1962. The judgment clarified that post-importation service charges are excludable, but pre-import support services directly connected to the sale attract customs duty. The appeal by Coal India was dismissed, affirming the authorities' stance on valuation.
Facts Of The Case:
In 2000, Central Coalfields Limited (a subsidiary of Coal India) invited tenders for spare parts for P&H Shovels. M...