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TMI Blog1998 (10) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... tart up and essential spares required for these. The appellant found the bid made by Hopkinsons Ltd., U.K. to be favourable but found that this bid did not include the supply of the spares in question. The appellant was not satisfied by the assurance given by the proposed supplier that they were not required and insisted on their supply. Accordingly, the supplier agreed to supply them within the price already quoted, 1,470,836. The appellant proposed to avail of the benefit of the concessional rate of the 9801 relating to project import for the goods required for the power station and accordingly obtained import licence and a letter from the sponsoring authority, Central Electricity Authority. Import licence and the recognition of the spo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re is no basis for valuing the goods in question separately. He says that M/s. Hopkins Ltd. agreed to supply the goods within the overall value of the bid tendered by them (which was finally accepted) and that therefore this value includes the value of spares. 4. We are not persuaded by this argument. The material before us confirms that Hopkinsons did not separately charge for these goods and supplied them without asking for additional rate. This however is not synonymous with the value of the goods being included in the value of the other goods. For that to have taken place, the value of the goods other than these which were supplied would have to be reduced so that within the overall value of the contract the value of these spares woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n agents M/s. Tiwari Thermal Engineers Pvt. Ltd. who, in turn, wrote to Hopkinsons asking for more realistic value. This resulted in the invoice for 113700. The appellant felt it much high and asked for scaling it down. The supplier obligingly sent a third set of invoice showing the value to be 69149. Therefore the appellant, considering to be the correct value, declared this in the bill of entry. The appellant has acted bonafide and has therefore not misdeclared value. 7. This rather ingenious explanation is difficult to accept. It would be a different matter if the appellant fully believed that the value of the goods was already included, and so claimed in the bill of entry filed. The original set of invoices sent by Hopkinsons indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apply. However, shortly after the bill of entry was filed the appellant wrote a letter dated 18-1-1991 to the Custom House. In paragraph 3 of this letter the appellant had, referring to some objections raised by the Department submitted that value of the spares was included in the overall value of the valves and requested clearance of the consignments under the licence issued for import. Now, although not in specific terms, this is clearly a request for clearance within the contract for registration which was asked for by the appellant by letter dated 11-7-1988. Notice issued to the appellant cited as a basis for demand on the value of the spares not being included in the original contract, and the fact that in the bill of entry for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and spares 4551406. Their value of the spares mentioned is that of electrical spares and not for the start up and essential spares. This is clear from the letter dated 19-6-1987 of Hopkinsons. 10. Regulation 5.1 of the Project Import Regulations, 1986 permits that an importer seeking assessment under Heading 92.01 must apply to the proper officer at the port of importation for registration of the contract or contracts as the case may be. This requirement has been complied with. The regulation does not require that the value of each item should be separately indicated. When the application was made, the appellants were under the (correct) impression later that they were not required to pay for the goods they were supplied within the over ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in denial of this claim particularly when it had, in the reply to the notice, claimed this concession, and the procedural requirements in regulation had been complied with. 13. The fact that there is no balance in the licence does not have any bearing on this issue. The bill of entry which was filed for the clearance does not indicate particulars of any import licence. The import licence issued and the project has not been debited for the value of these goods. In all probability, therefore, the goods have been cleared under the provisions of Open General Licence (OGL). Paragraph 78 of the Policy for 1993 permitted import of permissible spares under OGL and these goods are covered by that OGL. In all likelihood these spares would have be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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