TaxTMI 
TaxTMI 
2019 (5) TMI 1107
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.... their supplier in France. The contract which they have entered into with their supplier includes an amount of EUR 460,000 towards supervision of erection, commissioning and performance guarantee tests of the equipment and machinery. This amount was paid by the assessee to their overseas supplier. While assessing the bill of entry, the lower authority has added 50% of this amount i.e., EUR 230,000 to the assessable value taking roughly half of the erection and commissioning supervision charges as having been rendered prior to import and rest having been rendered post import. Aggrieved by the decision of the lower authority, assessee preferred an appeal before the first appellate authority who vide the impugned order held that the lower auth....
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....1 above this table reads as follows: "3.1 As a consideration for the scope of work enumerated under Article 2 above, the supplier shall be entitled to the payment of the Contract Price which shall be EUR 9,806,000 (say Euro nine million, eight hundred six thousand only). The above price includes supply of plant and equipment on CIF Vizag / Gangavaram / Kolkata seaport or CIP Kolkata airport basis (INCOTERMS 2000) and the charges for supervision of Erection, Commissioning and Performance Guarantee Tests in India. Sl. No. Item Description EUR Supply : Equipment & Spares 1 Supply of equipment including commissioning and mandatory spares. [FOB Value] 8,791,000 2 Ocean freight (for imported only) 305,000 3 Tra....
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....ucted overseas. She would submit that the term "offshore" used in the contract appears to have created some confusion because India is offshore from the point of view of the supplier while France is offshore from the point of view of the importer. The contract refers to offshore from the point of view of the supplier as is evident from the expression "in India" used in Para 3.1. Therefore, the entire amount of supervision of erection and commissioning are meant for services rendered by their supplier in India. 7. Learned departmental representative reiterates the findings of the first appellate authority and submits that the term used is "for offshore services" and therefore the services cannot be said to have been rendered in India. As t....