TMI Blog2004 (5) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... e Agreement provided for the licensing of that patented know-how and technology to the Joint Venture Company. The consideration for that was US $ 6 million. 2. As a part of the technology transfer, the transferors also made available instrumentation diagrams, process flow sheets, equipment list and specifications, estimated utility requirements, preliminary operating instructions and equipment lay out so as to enable the joint venture to undertake the detailed engineering work to set up the manufacturing facility. The joint venture entrusted the work of preparing detailed engineering for the implementation of the project to an Indian company namely, Davy Power Gas India Pvt. Ltd. The Davy Power Gas India Pvt. Ltd. prepared the detailed en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gineering Package was developed outside India it has a direct nexus with the imported equipment and machinery. It certainly comes within the ambit of Rule 9(l)(b)(iv) of Valuation Rules....." "9. Cost and Services. - (1) In determining the transaction value, there shall be added to the price actually paid or payable for the imported goods, - (a) ........ (b) The value, apportioned as appropriate of the following goods and services where supplied directly or indirectly by the buyer free of charge or at the reduced cost for use in connection with the production and the sale for the export of imported goods, to the extent that such value has not been included in the price actually paid or payable, namely :- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel for the appellant pointed out that this issue remains covered in favour of the appellants by our earlier order in the case of SRF Ltd. v. C.C., Mumbai - 2003 (161) E.L.T. 721 (T). Learned Counsel pointed out that the Tribunal held in the case of SRF Ltd. that basic engineering design package for the plant does not come within the scheme of Rule 9(l)(b)(iv). 5. We have perused the records and have considered the submissions made by both sides. In order to attract Rule 9(l)(b)(iv), two requirements are to be satisfied. The first being that engineering, development, art work, design work, plans and sketches should be necessary for the production of the imported goods. The second is that these should have been "undertaken elsewhere than i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing drawing. The second requirement under the Rule is that the design work, drawing etc. should have been "undertaken elsewhere than in India". We have already noted that what is attracted by the Rule are the detailed design work, drawing etc. undertaken by Davy Power Gas India Pvt. Ltd. That work was undertaken in India. And work undertaken in India is not attracted by the Rule. 7. From what is stated above, it is clear that the Basic Engineering Package supplied by the joint venture partner does not come within the scope of the Rule for the reason that that package was not what was "necessary" for the manufacture of the equipment and what was necessary was "undertaken in India". 8. In these facts and circumstances, we are of the view ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
