2016 (10) TMI 859

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....ssioner (AR), for respondent ORDER The fact of the case is that the appellant imported goods under Project Import Heading 98.01 of the Customs Tariff after registration of their two contracts.  As per the two contracts, the price payable on account of know how technical documentation cum supervision of erection and training was Rs. 54,00,000/- and Rs. 51,44,000/- respectively.  The goo....

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.... of know how fees is not includible in the assessable value in view of the Hon'ble Supreme Court's decision in the case of Essar Gujarat Ltd.   He further held that the portion of payment on account of know how fees is includible in the assessable value.  In Essar Gujarat Ltd., an addition of 10% of total fees payable towards know how, documentation etc. held to be addable to the va....

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.... the addition of 10% know how fees was made by the Commissioner (Appeals) by applying Rule 9(1)(c).  He submits that the said 10% on account of know how fees is not a condition of sale of goods.  He submits that the Commissioner (Appeals) wrongly applied the ratio of the judgment in the case of Essar Gujarat Ltd., whereas as per the judgment of Tata Iron & Steel, the value of 10% need no....

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....was rightly added to the extent of 10% as was held by the Hon'ble Supreme Court in the case of Essar Gujarat Ltd. - 1996 (88) ELT 609 (SC).  On going through the said judgment, we find that even technical services, engineering and consultancy even provided by the third party, the fees thereon was held to be added in the value of the imported capital goods under Rule 9 of the Customs Valuation....