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Issues: Whether the value of imported designs and drawings supplied under a separate contract was includible in the value of the turbine generator sets under Rule 9(1)(e) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, or whether such designs and drawings were separately classifiable under Chapter 49 of the Customs Tariff Act, 1975.
Analysis: The contracts for supply of equipment and for supply of technical documentation were separate, and the drawings and manuals were meant for erection, commissioning and civil work at site. The provision invoked by the Revenue applies only where the impugned payment is made as a condition of sale and satisfies the seller's obligation to a third party, and the Court found that those conditions were not met. The reasoning in the earlier decision dealing with similar contracts and technical documentation was applied, including the principle that drawings and documents supplied for construction, erection, assembly, maintenance or other post-importation activities are not to be loaded into the value of the imported goods when separately contracted and separately paid for.
Conclusion: Rule 9(1)(e) was not applicable, and the drawings and designs were required to be assessed separately under Chapter 49.
Ratio Decidendi: Value of technical drawings and documents supplied under a separate contract for post-importation erection, commissioning or maintenance cannot be included in the value of imported goods unless the payment is shown to be a condition of sale and to satisfy the seller's obligation to a third party.
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