2004 (5) TMI 101

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....therlands. Accordingly, the Joint Venture Agreement provided for the licensing of that patented know-how and technology to the Joint Venture Company. The consideration for that was US $ 6 million. 2. As a part of the technology transfer, the transferors also made available instrumentation diagrams, process flow sheets, equipment list and specifications, estimated utility requirements, preliminary operating instructions and equipment lay out so as to enable the joint venture to undertake the detailed engineering work to set up the manufacturing facility. The joint venture entrusted the work of preparing detailed engineering for the implementation of the project to an Indian company namely, Davy Power Gas India Pvt. Ltd. The Davy Power Gas....

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..../s. DPG India. .............Since the Basic Engineering Package was developed outside India it has a direct nexus with the imported equipment and machinery. It certainly comes within the ambit of Rule 9(l)(b)(iv)  of Valuation Rules....." "9. Cost and Services. - (1) In determining the transaction value, there shall be added to the price actually paid or payable for the imported  goods, - (a)      ........ (b)      The value, apportioned as appropriate of the following    goods    and    services    where supplied directly or indirectly by the buyer free of charge or at the reduced cost for use in connection wi....

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....pellant has submitted that the second requirement under the rule, that the engineering design etc. should be "undertaken elsewhere than in India" is also not satisfied in the present case. During the hearing of the case, learned Counsel for the appellant pointed out that this issue remains covered in favour of the appellants by our earlier order in the case of SRF Ltd. v. C.C., Mumbai - 2003 (161) E.L.T. 721 (T). Learned Counsel pointed out that the Tribunal held in the case of SRF Ltd. that basic engineering design package for the plant does not come within the scheme of Rule 9(l)(b)(iv). 5. We have perused the records and have considered the submissions made by both sides. In order to attract Rule 9(l)(b)(iv), two requirements are to b....