Customs valuation of bundled imports requires proof of free supply or a condition of sale, not just common invoicing.

Design engineering and site-run imports cannot be added to the assessable value of fermenters unless the Customs Valuation Rules are satisfied. Inclusion under Rule 9(1)(b) failed because there was no free supply by the buyer to the overseas supplier and the engineering material was not shown to be necessary for production of the fermenters. Inclusion under Rule 9(1)(e) also failed because the record did not establish that purchasing the design engineering and site run was a condition precedent to the sale of the fermenters. A common purchase order, invoice, or airway bill was insufficient to club the items for valuation, and the demand for addition of value failed.

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Issues: Whether the value of design engineering and site run imported along with fermenters could be included in the assessable value of the fermenters under the Customs Valuation Rules.

Analysis: The assessment of the design engineering and site run under Chapter 49 had not culminated in a clearance for home consumption and therefore did not conclude the valuation exercise for the purpose of the fermenters. Under Rule 9(1)(b), inclusion was not justified because there was no free supply by the buyer to the overseas supplier and the engineering/design material was not necessary for production of the imported fermenters themselves. Under Rule 9(1)(e), inclusion was not justified because the record did not show that purchase of the design engineering and site run was a condition precedent for sale of the fermenters. Mere common purchase order, common invoice, or common airway bill did not make the items inseparable for customs valuation. Goods imported under the same contract still had to be assessed on their own merits unless a recognised exception applied.

Conclusion: The value of the design engineering and site run could not be added to the assessable value of the fermenters and the valuation demand failed.

Ratio Decidendi: For customs valuation, unrelated imported items cannot be clubbed merely because they are bought together; inclusion under Rule 9(1)(b) or Rule 9(1)(e) requires a legally established free supply or a proven condition of sale, not merely a common contract, invoice, or use.

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