2015 (5) TMI 488 - SC - Customs

Concessional rate of duty - Valuation of goods - Inclusion of know how fees - Held that - The benefit of project import regulations is available to PTA plant and Paraxylene Plant and goods imported under OGL - The question of includibility of know-how-fees in the assessable value of imports is remitted to the Commissioner for revaluation - It is not even necessary to decide these issues by this Court as we would also be constrained in taking up these issues for want of adequate material. Thus, we find that the Tribunal has rightly remitted these issues back to the Commissioner for decision in the light of its observation made in respect of these two issues. - Decided against Revenue.

Summary

Issues:
1. Determination of applicability of concessional rate of duty to project imports of PTA and Paraxylene Plant and goods under OGL.
2. Inclusion of know-how fee in the assessable value of imported equipments.

Analysis:
1. The Supreme Court reviewed an order by the Tribunal which addressed seven issues, with the appeal limited to issues 4 and 5. Issue 4 concerned the availability of project import regulations to PTA and Paraxylene Plant and goods under OGL. The Court held that the benefit of project import regulations indeed applies to these imports.
2. Issue 5 focused on whether the know-how fee of US $24.60 million should be included in the assessable value of imported equipments. The Court decided to remit this question back to the Commissioner for reevaluation due to insufficient material before the Tribunal.
3. The Court emphasized that both issues were remitted to the Commissioner for further assessment, as there was inadequate material available for a conclusive decision. Consequently, the Court dismissed the appeals, directing the Commissioner to decide on these issues promptly, preferably within six months from the date of the order.