TMI Blog2016 (10) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot includible in the assessable value in view of the Hon ble Supreme Court s decision in the case of Essar Gujarat Ltd. He further held that the portion of payment on account of know how fees is includible in the assessable value. In Essar Gujarat Ltd., an addition of 10% of total fees payable towards know how, documentation etc. held to be addable to the value of import based on duty already paid by importer at the time of provisional assessment. The adjudicating authority held that on account of finalization of assessment, the appellant is entitled to refund of ₹ 24,92,960/- under Section 18(2) of the Customs Act, 1962. Aggrieved by the order of the adjudicating authority to load 10% of fees on account of know how, documentatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale of the machine. In such situation, the technical know how fees was rightly added to the extent of 10% as was held by the Hon ble Supreme Court in the case of Essar Gujarat Ltd. - 1996 (88) ELT 609 (SC). 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. Therefore, in our considered view, the ratio of the judgment of Essar Gujarat Ltd. (supra) is clearly applicable. As regards the judgment in the case of Tata Iron Steel Co. Ltd. vs. Commissioner - 2000 (116) ELT 422 (SC), the facts of the said judgment are different fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
