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2013 (8) TMI 777 - AT - CustomsValuation inclusion of inspection charges - inclusion of cost of erection, commissioning and installation of the three cranes - Held that:- he words that ICAN shall provide, shows that inspection was a condition of the sale and not optional to ICAN. Even though payment has been made separately, the fact remains that it was an obligation of the seller to provide the certificate. - inspection charges have to be included in the assessable value since it was ICANs responsibility and expense was incurred on behalf of the ICAN by GPPL since it was obligatory for ICAN to provide the certificate. Any expense incurred on behalf of the seller by the buyer and obligatory as per the contract and incurred prior to import is includable in the assessable value. Decided in favor of revenue. Inclusion of cost of erection, commissioning and installation of the three cranes Cost incurred after import - Held that:- It cannot be said that the purchase contract had a condition for erection to be undertaken and this was a condition of sale - Commissioner had wrongly interpreted the provisions of Rule 4 to reject the transaction value on the ground that importation of cranes in the dis-assembled form means restriction in terms of clause (e) of said Rule 4 (2) of the Customs Valuation Rules assesse shall be entitled to refund of all payments made including an annual interest payable on the same. The purchase contract also included a warranty and provides that warranty shall survive the expiration and / or sooner determination of the contract - It also provides that the warranty shall be the sole remedy for the goods - the case was decided on the basis of Valuation Rules and the terms of the contract, which invariably were not comparable according to clause -1 assesse was required to do necessary drawing, design engineering and modification work and thereafter only send the cranes in disassembled form - By the time the disassembled cranes were received in India, full drawing, design and engineering details and documentation required was available Decided in favor of assesse.
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