The value of supply of goods betweenthe principal and his agentshall-
(a) be the open market value of the goods being supplied, or at the option of the supplier, be ninety per cent. of the price charged for the supply of goods of like kind and quality by the recipient to his customer not being arelated person, where the goods are intended for further supply bythe said recipient.
Here Usa, fee 30 YA 2017 634 (3)
Illustration: A principal supplies groundnut to his agent and the agent is supplying groundnuts oflike kind andquality in subsequent supplies at a price offive thousand rupees per quintal on the day ofthe supply. Another independentsupplier is supplying groundnuts of like kind and quality to the said agent at the price offour thousandfive hundred andfifty rupees per quintal. The value ofthe supply made by the principalshall befour thousandfive hundred andfifty rupees per quintal or where he exercises the option, the value shall be 90 per cent. offive thousand rupeesi.e., four thousandfive hundred rupees per quintal.
(b) where the value of a supply is not determinable under clause (a), the same shall be determined bythe application ofrule 30 or rule 31 in that order.