TMI Blog2003 (8) TMI 468X X X X Extracts X X X X X X X X Extracts X X X X ..... d erection and supervision are includible in the assessable value of goods imported under 3 Bills of Entry dated 4-11-96, 10-9-96 and 25-2-97. Aggrieved by the finding of the Commissioner that they are so includible, the importer has come up in appeal. 2. The appellant, a Government of India Undertaking was appointed as Project Management Consultants for construction of hanger for aircraft, namely, Boeing 747-400 by Air India at Bombay. The contract, inter alia, included providing facilities of (a) Under Carriage Lifting Platforms and (b) Suspended Docking System for attending to the maintenance of the Aircrafts. The appellant invited tenders for supply and erection of the aforesaid facilities. Later they entered into a contract with M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian equipment including cost of fabrication in India for suspended docks of Nose, Fuselage and Tail, (ii) Cost of installation and commissioning including local expenses, (iii) Accommodation, ground transport and general expenses. (C) Duties and Taxes 3. Pursuant to the above contract, the appellant imported three consignments covered by Bills of Entry dated 4-11-96, 10-9-96 and 25-2-96. These goods were cleared after assessment of duty on the declared value. Subsequently, the appellant imported two more consignments covered by Bills of Entry dated 11-2-97 and 21-2-97. While assessing the above two Bills of Entry, the adjudicating authority took the view that costs, namely, (a) Application Engineering, (b) Technical data and d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, addition of the cost of service etc. referred above to the value of the goods, cannot be sustained. The learned DR, on the other hand, contended that the Commissioner has correctly applied the ratio of the decisions relied on by him and therefore, the loading made to the value of the goods imported is to be sustained. 6. After hearing both sides and examining the terms of the contracts between the parties, we are inclined to take the view that the appellant s challenge against the order impugned is to be sustained. We find that the ratio of the decisions of the Supreme Court in CC, Ahmedabad v. Essar Gujarat will have no application to the facts of the present case. The facts in that case are entirely different. A direct reducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f no use to Essar Gujarat. It was in view of the above terms in the agreement between the parties, the Apex Court came to the conclusion that the process licence fee and also the fee paid for transfer of technology under the agreement are includible in the value of the plant. On the second issue it was held that the fee paid to V.A. for theoretical and practical training cannot be added to the value of the plant. So also the entire payment made for engineering consultancy and other services undertaken by V.A. were held not includible. On the other hand, the fee paid for specialist supervision of dismantling the plant including the engineering and consultancy services for this purpose was found to be added in the value of the plant. In Andhr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y paid or is to be made as a condition of sale of the imported goods by the buyer to the seller or to a third party; (ii) Such payment, if made to a third party, has been made or has to be made to satisfy an obligation of the seller; and (iii) Such payments are not included in the price actually paid or payable. The Supreme Court went into the details of the terms of the contracts between the parties. It was then observed as follows :- It is nobody s case that the seller had an obligation towards a third party which was required to be satisfied by it and the buyer (i.e. the appellant) had made any payment to the seller or to a third party in order to satisfy such an obligation. The price paid by the appellant for drawings and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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