1997 (10) TMI 266

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....gned a contract on 27-2-1993 with M/s. Davy Mckee (Stockton) Ltd. by which M/s. Davy were to provide basic design and drawing and also supervise the detailed engineering erection and commissioning of the gas cleaning plant in India and were also to undertake training of personnel abroad. They were also to render technical services and undertake guarantee test for the efficient functioning of the gas cleaning plant. The fabrication, manufacture etc. are to be done in India with indigenous goods based on the designs supplied by M/s. Davy. 2. In pursuance of the agreement a consignment of Design and Engineering Drawings were imported at Mumbai Customs, Air Cargo Complex for which Bill of Entry was filed on 20-8-1996. The Asstt. Commiss....

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....93. Annexure I to the Agreement is summary price schedule according to which the following are the payments : Design and Engineering .... GBP 20,00,000 Foreign supervision charges in India during design, erection, commissioning & performance guarantee tests. ... GBP   6,57,900 Training charges ... GBP       82,600 As per the contract Davy Mckee agreed to undertake the basic design and engineering, layout engineering, co-ordination, training services, supervision of detail engineering and drawing, and supervision of erection, testing and successful commissioning of gas cleaning plant, and demonstrate the performance guarantees. The Agreement also indicates at Para 1.3.1 :-....

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....hole engineering package of supervision of detail drawing, erection, commissioning and performance guarantee test. The payment made in foreign exchange towards supervision charges during design, erection and commissioning will necessarily have to form part of the assessable value of the imported goods and the value thereof will include not only the price paid for design and engineering but also for supervision charges. This will follow from Rule 9 of the Valuation Rules which provides for addition of certain costs and services to the transaction value. Rule 9(1)(e) covers all other payments actually made or to be made as a condition of sale of imported goods by the buyer to the seller. 7. In coming to the above conclusion we find su....