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Inclusion of charges paid for technical services in the value for assessment to Customs duty. Detailed Analysis: The appeal by a company involved the inclusion of charges paid to a Canadian company for technical services in the value for assessment to Customs duty. The company had set up a plant for manufacturing hot briquetted iron and decided to establish a plant for hot-rolled coils and strips, along with increasing the capacity of the existing sponge iron plant. The company entered into agreements with the Canadian company for engineering and technical services. The Customs department proposed to include the amount paid for technical services in the assessable value of the imported goods, citing Customs Valuation Rules. The Commissioner concluded that the technical services were necessary for making the plant operational, ordering the inclusion of the sum in the assessable value, which led to the appeal. The appellant contended that the services were not a condition of sale of the imported goods and listed various services provided by the Canadian company, arguing that none of them could be considered a condition of sale. The appellant disputed the reliance on a previous judgment, stating that the circumstances were different in that case. The departmental representative supported the Commissioner's decision. The Commissioner justified treating the contracts as one based on the necessity of technical knowledge for setting up the plant and the sequence of signing agreements. However, the Tribunal disagreed, stating that the value of imported goods should only include permissible additions under the Valuation Rules. Referring to a previous Supreme Court judgment, the Tribunal clarified that only fees directly related to the imported goods could be added to their value, such as charges for dismantling and preparing the plant for delivery. The Tribunal found that only the amounts payable for obtaining a process license for the sponge iron plant would have been includible in the value, but since that plant was not imported, the inclusion of charges for technical services was unwarranted. Consequently, the Tribunal allowed the appeal and set aside the order to include the charges for technical services in the assessable value of the imported goods.
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