SC dismisses Revenue's appeal; brand-promotion expenses not to be included in valuation of imported goods

Last updated: 12 August 2021

Save Share

Quick Summary

The Supreme Court has dismissed an appeal by the Revenue, upholding a previous ruling by the Customs Excise and Service Tax Appellate Tribunal (CESTAT). The CESTAT had determined that marketing, advertising, sponsorship, and promotional expenses incurred by an importer for brand promotion should not be added to the value of imported goods for customs duty purposes. The court found no obligation for the importer to incur these specific expenses as a condition of sale, deeming them post-import activities undertaken at the importer's own discretion.

Court :
Supreme Court of India

Brief :
The Hon'ble Supreme Court of India in The Commissioner of Customs v. M/s Indo Rubber and Plastic Works [Civil Appeal No. 3685/2020 dated July 01, 2021] dismisses Revenue’s Special Leave Petition ('SLP') against the Customs Excise and Service Tax Appellate Tribunal ('the CESTAT') order which had held that marketing, advertising, sponsorship and promotional expenses/payments made by the assessee (importer) for promotion of brand is not includible in assessable of imported sports goods and thus, Rule 10(1)(e) of Customs (Determination of Price of Imported Goods) Rules, 2007 ('the Customs Valuation Rules') is not invokable.

Citation :
Civil Appeal No. 3685/2020 dated July 01, 2021

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

228 Views Comment Share Custom Report

Judgement posted by

Bimal Jain

Service

FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

View Judgements

Comments