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2016 (10) TMI 859 - CESTAT MUMBAI

2016 (10) TMI 859 - CESTAT MUMBAI - TMI - Project 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 techn .....

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d 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. - C/831/04-Mum - A/90678/16/CB - Dated:- 2 .....

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,00,000/- and ₹ 51,44,000/- respectively. The goods were assessed provisionally and at that time, payment of ₹ 54,00,000/- on account of first contract was included in the assessable value and duty was collected of ₹ 29,70,000/-, in addition to payment of duty on declared price of machine. The amount on account of second contract was not included at the time of provisional assessment during finalization of project contract. The adjudicating authority relying on the Hon ble Supr .....

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r 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, .....

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nt, submits that the addition of 10% know how fees was made by the Commissioner (Appeals) by applying Rule 9(1)(c). He submits that the said 10% on account of know how fees is not a condition of sale of goods. He submits that the Commissioner (Appeals) wrongly applied the ratio of the judgment in the case of Essar Gujarat Ltd., whereas as per the judgment of Tata Iron & Steel, the value of 10% need not be added. He placed reliance on the judgment of the Larger Bench of the Tribunal in the ca .....

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