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2019 (9) TMI 1282 - SC - CustomsValuation of imported goods - necessary software had to be embedded in the equipment - cost of post import services - rejection of declared value - Classification with reference to Note 4 to Section XVI of the First Schedule - Rule 10A of the erstwhile Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 - inclusion of cost of services - Rule 9(1) (e) (adding cost of services) of the erstwhile Custom Valuation (Determination of Price of Imported Goods) Rules, 1988 - provisional assessment not finalised - HELD THAT:- It is a matter of record that after considering the purchase order in the instant case, the Tribunal found that apart from supply of equipment, necessary software had to be embedded in the equipment before the supply was effected. The facts also disclose that out of 19 items indicated in the Bill of Entry, only 8 items were physically presented while the rest were already embedded in the main unit. These facts are not only reflective that the individual components were intended to contribute together and attain a clearly defined function as dealt with in Note 4 of Section XVI as stated above, but also indicate that software that was embedded through cards in the main unit, was not any post-importation activity. The value of the software and the concerned services were therefore rightly included and taken as part of the importation. The facts on record as stated above further disclose that the Department was therefore right in invoking principle under said Note 4 and considering the imported items as part of one apparatus or machine to be classifiable under the heading appropriate to the function. The submission advanced by the Appellant in that behalf therefore has to be rejected. Even if the governing rule is taken to be Rule 9 of 1988 Rules, there would be no difference in the ultimate analysis. Appeal dismissed.
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