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2016 (10) TMI 859 - AT - CustomsProject Import - valuation - drawing and documents for use during construction, erection, assembly etc and know how fees to be included in assessable value? - the case of COLLECTOR OF CUSTOMS (PREV.), AHMEDABAD Versus ESSAR GUJARAT LTD. [1996 (11) TMI 426 - SUPREME COURT OF INDIA] referred - Held that: - the judgment of Essar Gujarat Ltd. is clearly applicable as the issue is similar where it was held that Process licence fee paid being the cost of technical services provided and a sum of on account of engineering and consultancy fee payable to V.A., should be added to the value of the imported plant. It is clear that the foreign supplier of the machine is under obligation to provide the technical know how and training along with supply of the machine. Therefore, the technical know how is the integral condition of the supply agreement. Thus it is a condition of sale of the machine. In such situation, the technical know how fees was rightly added to the extent of 10% as decided in the case of Essar Gujarat Ltd. On going through the said judgment, we find that even technical services, engineering and consultancy even provided by the third party, the fees thereon was held to be added in the value of the imported capital goods under Rule 9 of the Customs Valuation Rules, 1988. 10% towards technical know how includible in the value of the goods - appeal dismissed - decided against appellant.
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