2016 (12) TMI 320

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....fact that arises for consideration in all these appeals is regarding duty liability of the drawings and designs imported by appellant. Appellant contended before the lower authorities that the drawings and designs are not goods, hence duty liability does not arise while it is the case of the revenue that the agreement entered by the appellant with overseas designers indicates payment of an amount for the services towards drawings and designs. The adjudicating authority in ail these appeals in separate adjudication order has held that drawings and designs and goods and liable for levy of customs duty; gave a relief of reduction of 10% from the contract price and confirmed the demands raised with interest and also imposed penalties. Appellant....

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....entative reiterates the findings of the lower authorities. 6. On careful consideration of the submission made by both sides and perusal of the records, we find that the issue is regarding dutiability of the drawings and designs which were imported by the appellant for construction activity of various hotels. It is undisputed that during the relevant period the appellant had declared drawings and designs in the bill of entry but declared a nominal value of US $1 considering them as not goods. The issue as to whether drawings and designs are goods or otherwise, is now settled by the apex court in Associated Cement Companies Ltd. (supra) wherein it has been held that drawings and designs are goods. Respectfully following the same judgment, ....

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.... all these appeals the contract is for conceptual design, schematic design, design development for floor plan or elevation and design and specification for space planning and loose furnishing. The entire agreement talks about preparing drawings and designs for activity for hotels and rooms. In our view, the contracts are not composite contracts. In order to consider them as composite contract, clause of the scope of work is read; in all these contracts appellant had contracted for drawings and designs only j hence the plea of the Id. counsel that 1/3^rd of the value of the contractual compensation should be considered for discharge of customs duty is not acceptable and the proposition is rejected. In our view, the adjudicating authority has....