TMI Blog2019 (5) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellate authority who vide the impugned order held that the lower authority was wrong in arbitrarily adding 50% of the supervision charges to the assessable value and held that it is for the assessee to show what percentage of the supervision charges are for services rendered in India after importation and to that extent they are not liable to the Customs Duty. He ordered refund of the duty paid by the appellant in excess of the duty payable on the supervision charges paid for supervision overseas. Aggrieved by this order of the first appellate authority, the present appeal is filed by the appellant. 4. Learned counsel for the appellant submits that confusion arose regarding the term offshore used in the contract. It is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supply : Equipment Spares 1 Supply of equipment including commissioning and mandatory spares. [FOB Value] 8,791,000 2 Ocean freight (for imported only) 305,000 3 Transit Insurance Incl. Above 4 Cost of mandatory spares (2 years O M spares) 250,000 5 Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 Total Civil Structural Price (14+15) Services 17 Unloading, Storage, Handling, Installation, Testing, Commissioning PAT etc. NA 18 Training Incl. In 19 19 Supervision of erection and commissioning 460,000 20 Service Tax incl. Ed. Cess Extra by O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... presentative reiterates the findings of the first appellate authority and submits that the term used is for offshore services and therefore the services cannot be said to have been rendered in India. As there is ambiguity, the first appellate authority has correctly held that the appellant is entitled to refund to the extent they can prove that the charges were for services rendered in India. 8. We have considered the arguments on both sides and perused the records. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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