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2014 (8) TMI 396 - AT - CustomsValuation - import of drawings, designs and documents separately from import of plant and machinery - drawings, designs and technical documents classifiable under Customs Tariff Heading 98.03 were imported through courier without payment of duty - Suppression of value at the time of import - Held that:- Normally, "books" mean, text books or reference books meant for reading by general public, professionals and students. The imported goods were meant for sole purpose of the appellant, which cannot be regarded as "book" not being meant for reading by general public. Those were technical literature relating to the plant and machinery imported by appellant to bring such plant and machinery into existence and carry out manufacture using the technology agreed to be imparted. Perusal of the copy of the collaboration agreement throws light that the drawings, designs and documents came through courier are all attributable to the plant and machinery imported according to technical collaboration agreement. That formed part of the entire supply contract and does not leave any doubt to treat technical collaboration agreement to be independent of divisible contract of supply and service. The drawings, designs and technical documents are no doubt goods being integrally connected with the plant and machinery and not classifiable under CTH 49.01. In the present case, those were inevitable necessity of the capital goods to come into existence. Inseparability of each other was their virtue. Therefore it does not appeal to common sense to treat the import consignment independent of plant and machinery to be called "book". When it transpires that the entire contract of supply of plant and machinery (capital goods) and supply of drawing and design were integrally connected with each other that shows allocation of part of value of contract towards drawings and designs to escape duty on capital goods. Such division brings the case to the purview of section 28 of Customs Act 1962. Once the goods (drawing and designs) were not books, the notification benefit claimed by appellant is also deniable and adjudication was not time barred. Even the alternate claim of the appellant that the import of drawing and design shall fall under the Tariff Heading 99.10 is inconceivable because those were not specimens, models, wall pictures nor diagrams for instructional purpose as is specified by that entry. Appellant fails to succeed on merit as to the claim that the imported drawings, designs and technical documents were books. Exemption benefit of the notification claimed by it is not admissible to it since the drawings and designs are not books classifiable under the CTH claimed by the appellant. Thus appeal on this count is dismissed - However, penalty is reduced - Decided partly in favour of assessee.
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