9911796707
|
Home
Issues Involved:
Challenge to order upholding duty payment on engineering and technical service charges included in imported goods' value. Detailed Analysis: The appellant contested the order of the Commissioner (Appeals) which upheld the duty payment of Rs. 64,47,244/- on the grounds of 8% of net FOB value being payable to the Indian agent for engineering and technical service charges. The appellant argued that this amount was unrelated to the imported goods' value as per the terms and conditions of the supply order (Annexure 'D'). The department's Authorized Representative supported the inclusion of the amount in the goods' value based on the authorities' reasoning. The Tribunal noted that while payments for engineering services to the Indian agent of the foreign supplier for equipment already supplied should not be part of the transaction value, the purchase order specified 8% of the net FOB value of the imported spares as engineering and service charges. However, the Tribunal found no clear connection between this fixed percentage and the engineering services for previously supplied equipment. Consequently, the Tribunal did not find grounds for a total waiver of pre-deposit, directing the appellant to deposit 50% of the payable amount within eight weeks to stay the impugned order. Failure to comply would result in dismissal of the appeal. Upon depositing the required amount, the appellant would be exempt from paying the remaining sum under the order. The Tribunal disposed of the application accordingly and scheduled a compliance report for 25-5-2006. This judgment addresses the critical issue of whether engineering and service charges payable to the Indian agent for previously supplied equipment should be included in the assessable value of imported spare parts. The Tribunal's decision hinges on the lack of demonstrated nexus between the fixed percentage and the services provided, leading to the directive for partial payment to stay the order. The judgment underscores the importance of establishing a clear link between additional charges and imported goods' value to determine their inclusion in the assessable amount, highlighting the need for coherence in pricing structures and service agreements to avoid disputes over duty payments.
|
