Home Case Index All Cases Customs Customs + AT Customs - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1107 - AT - CustomsValuation of imported machinery - EPCG Scheme - addition of 50% of the supervision charges to the assessable value - post-importation charges - contract which appellant have entered into with their supplier includes an amount of EUR 460,000 towards supervision of erection, commissioning and performance guarantee tests of the equipment and machinery - HELD THAT:- It is not in dispute that the charges for supervision of erection, commissioning and performance guarantee tests need not be included in the assessable value to the extent they represent post importation charges and to the extent they represent any charges for services rendered prior to importation, they are includable. Perusal of Article 3.1 of the contract shows that the entire amount of EUR 460,000 paid by the assessee to their supplier is towards supervision of erection, commissioning and performance guarantee tests in India. Therefore, the entire amount is for services rendered in India. Even otherwise, the supervision of erection, commissioning and performance guarantee tests cannot be done in the country of origin because a commissioned plant cannot be imported. Commissioning takes place after the import - there is no scope for interpreting these charges as meant for any services rendered in the country of origin. The entire charges for supervision of erection, commissioning and performance guarantee tests in India is not includable in the assessable value - Appeal allowed - decided in favor of appellant.
|